SOUTH AFRICAN ANNUAL REPORT 2013

SOUTH AFRICAN RUGBY UNION ANNUAL REPORT www.sarugby.co.za 2013

SOUTH AFRICAN RUGBY UNION ANNUAL REPORT 2013 CONTENTS SARU Sponsors 02 President’s Message 04 CEO’s Report 05 Integrated Report 10 Audit & Risk Committee 36 Operations & Finance 40 Financial Statements 42 High Performance 84 Development 98 Referees 104 Commercial Marketing 110 Corporate Affairs 116 Human Resources 122

Images supplied by Gallo Images

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 01 02 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 SARU SPONSORS

TIER 1 SPONSORS

ASSOCIATE SPONSORS

OFFICIAL SUPPLIERS

SARU ENDORSED TOURNAMENT SPONSORS

TOURNAMENT ASSOCIATE SPONSORS

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 03 PRESIDENT’S REPORT

o borrow from the language of At an administrative level the dominant issue of the year remained ’s the sports coach, 2013 was very unique challenge of accommodating six much a game of two halves or, franchise regions when we have only five places in . That more accurately, a year of two issue has been resolved post-2015 as our contrasting streams. On-the-field there was representatives secured agreement from T our SANZAR partners that a sixth South a definite sense that the playing fortunes of African team was a “non-negotiable” and will be a part of any new broadcast deal. the Springboks, Junior Springboks, Sevens That left the 2014 and 2015 seasons to navigate to the greatest possible and Women’s teams remained on an up- advantage in challenging circumstances. ward curve. Off it, however, both SARU and The Executive Council made proposals to remedy that situation by enlarging the its members were confronted by mount- Absa Premier Division to eight teams and ensuring the participation of ing financial challenges. Our sport was not all six franchises in that competition for immune from the after-effects of the global both seasons. Ultimately that outcome was reached through the General Council, financial crisis as the disposable income of although it was only confirmed early in 2014. supporters was squeezed and corporate On the field however, the picture supporters found their own budgets remained almost unremittingly bright with no team making greater strides under pressure. than those achieved by the Springboks

04 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 themselves. ’s second season That victory was charged with emotion as it came in the week in charge saw a ‘new’ Springbok team begin in which we saw the passing of the first President of a demo- PRESIDENT’S REPORT to emerge and by year end we could reflect cratic South Africa, Nelson Rolihlahla Mandela. It was a loss felt on the Springboks’ finest season in statistical not only by South Africa but by the world – a measure of how terms since the Tri-Nations winning season of many lives he had touched and how significant was his impact 1998 when 11 of 12 tests were won. Meyer’s not just on politics but on humanity. We were all unbelievably Boks won 10 out of 12 in 2013 – losing only privileged to have shared our country and this era with him – his to a very impressive New Zealand combi- name will live for evermore. South Africa and our sport owed nation – but it was as much the way they him a great debt; thank you Tata for being the Springboks’ friend played that signalled the arrival of a new era. and inspiration. They scored a sumptuous 47 tries, enjoyed a The depth of SA rugby is the envy of many nations and second successive unbeaten European tour; that was exemplified by the performance of the SA President’s enjoyed their biggest ever win in Australia XV in the IRB’s Tbilisi Cup. They were pitched against World and their first in since 1971 and also Cup finalists Georgia and Uruguay as well as an Emerging Ire- our biggest win over Argentina (73-13). land team. The President’s XV, made up largely of players from The U20s blooded exciting new talents for the Steval , beat all three of their opponents to claim the future during the Junior World Championship in France. Players such as , Seabelo The depth of SA rugby is the envy of many nations Senatla and produced and that was exemplified by the performance of the dazzling performances in the back- line – before heading off to Mos- SA President’s XV in the IRB’s Tbilisi Cup. They were cow for the Sevens – while and pitched against World Cup finalists Georgia and others made an impression among Uruguay as well as an Emerging Ireland team. the forwards. The Junior Spring- boks beat the eventual champions, , in the group stages only to fall to a the title in the Georgian capital to emulate the success of the final-movement try by in the semi- SA Kings XV, which won the IRB Nations Cup title in Romania in final. However, the tournament ended on a 2011. high note when New Zealand were beaten Women’s Rugby in South Africa is only a decade old but sig- (41-34) for the second successive season, nificant structural progress was made in 2013 with the establish- after the Junior Boks had trailed 21-0 after ment of a training base for the Sevens squad in half an hour. and the involvement of the HP department in their preparation. In mid-year we also decided to take a The plan bore fruit in September when the XV-a-side team new direction with our Sevens programme. recorded a record victory, beating Uganda 63-3, to reach the The time came to part ways with our Sevens Women’s Rugby World Cup finals. coach, , ending a 15-year involve- Our national teams will compete in men’s and women’s ment with Springbok Sevens as a player, Rugby World Cups and two Junior World Championships in the captain and coach. Paul’s contribution to 2014 and 2015 seasons. There are obviously no guarantees but Sevens rugby in this country over that period the evidence was clearly laid out in 2013 that our teams will be was outstanding. The new coach, highly competitive whenever and wherever they appear. – also a former Sevens player and national captain – enjoyed early success by leading Oregan Hoskins the team to the Cell C Nelson Mandela Bay President Sevens title in Port Elizabeth in December. South African Rugby Union

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 05 CEO’S REPORT

he determination to continu- However, a review of 2013 would not be complete without acknowledging ally raise the bar within South the increasingly challenging financial environment in which the game oper- African rugby saw us reap a ates. A number of programmes and rich harvest in 2013 as a num- activities had to be re-engineered during the course of the year to remain within berT of projects reached their full expres- a budget that had to be revised down- wards. The fact that the organisation sion. They will be part of our landscape managed to report a profit was due to for years to come and offer significant prudent financial management. There was an impact on a number of plans but benefits in terms of increasing the rug- operations were managed to continue without interruption. by-playing intellectual property (IP) of The organisation was able to report a South Africa and also in what SARU of- small operating profit in that very diffi- cult economic environment, with a group fers to its players and supporters. profit before taxation of R5.1 million for the year ended 31 December 2013. The after-tax profit was boosted to R11.1 mil- lion because of a write back of taxation charges of R6 million. However, the advances far out- weighed the interruptions in 2013 as we continued on our mission of making ourselves more relevant to our supporters and more useful to our rugby

06 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 CEO’S REPORT

The inaugural Cell C Community Cup proved to be a massive success with well attended matches all over playing members. analysis of overseas teams to assist the country and a One of the concerns for some time has those teams in their preparations – as fitting climax to the been the fact that SARU has not taken a well as tracking performances for our competition. GAP lead role in increasing the rugby-playing Springbok planning. Despatch (pictured) knowledge base of South Africa. We used The Mobi-unit’s work goes on through- won the title with a to take the view that that was the concern out the year – working with all our national penalty kick after of our members – the provincial unions teams, including the Sevens, Junior Boks and the final hooter in the who actually employ the coaches and the Women Springboks – as well as Heyneke final played in George, players. But, often, they would look to SARU Meyer’s team. The benefits have already beating Jonsson for leadership and resources in those same been felt and will only grow over coming College Rovers 26-24. areas and we have now begun to address years. In addition, the HP department de- those concerns. For the first time we have veloped bespoke software packages for use taken an active part in the elite coaching of in South African rugby. They are an analysis the game with SARU employees through the system called “Stratos” and an athlete man- deployment of our mobi-unit. agement programme, named “Footprint”. Our newly re-designed High Performance Both will be rolled out in 2014. department is staffed by technical analysts This year also saw the formal establish- and coaching consultants who work not ment of four SARU academies by the De- only for the national teams but also for the velopment department, with the assistance mobi-unit. As a result they have toured the of funding from Lotto. Much groundwork country, working at grassroots as well as had been undertaken in the two previous elite level to spread their knowledge in the two years and those plans came to fruition key components of scrumming, lineout, in 2013 with pleasing results. In their first tackle, kicking, defence and analysis. year of operation, teams based on Academy The HP department now works hand- players filled five of the eight play-off posi- in-glove with the Vodacom Super Rugby tions available to them as Eastern Province, franchises, providing them with technical Border, SWD and Boland all felt the benefit

ANNUAL REPORT 2013 | SOUTH AFRICAN UGBY UNION | 07 ABOVE: reading a of SARU assistance. manage clubs and ensure improved gov- children’s book At the beginning of the year, a new ernance for the good of our rugby-playing during the SARU’s SARU-inspired club rugby competition was community. 67 minutes in launched in the shape of the Cell C Com- We also looked at connecting with support of Nelson munity Cup, attracting huge interest in the the game’s non-playing stakeholders. We Mandela Day. open club community. It quickly became a launched our ‘Boks for Books’ campaign in well-established institution on the calendar June with the full weight of our national OPPOSITE PAGE: having achieved what we set out to do – teams thrown behind it. Education is the No Bismarck du Ples- reinvigorate open club rugby by providing 1 priority of national government with good sis walks through a new aspirational competition for recrea- reason. When we looked around for an initi- the Springbok Ex- tional players as well as those who are ative in which SARU could make a difference perience museum. more serious. it quickly became apparent that schools and The Development department also literacy were a natural fit. Springboks are backed that initiative by launching a new ‘made’ at school. Our national players were training programme purely for club adminis- given great opportunities in all spheres at trators – called ClubWise. The study course their schools and they are great spokesmen is approved by Cathsseta and offers a NQF for them. They understand the value of the Level 5 approved course – something that is advantages they have been given which is unique in SA sport. A number of individuals why our players have become such great were trained to facilitate the course in 2013 ambassadors for the programme. and we shall see the first graduates roll off 2013 was also the year that SARU went the production line in 2014 better able to into the museum business in a manner that

08 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 properly reflects the complexity, richness as diverse as , Newcastle, Birming- and power of South African rugby and the ham and where the Springboks Springboks. On Heritage Day we opened The will play their World Cup pool matches. At Springbok Experience rugby museum at one the end of 2013 we announced the forma- of Africa’s most visited tourist attractions – tion of SA Rugby Travel, in partnership with the V&A Waterfront. Tourvest. Springbok fans will now be able to It is a modern, cutting edge attraction, access match tickets and travel packages di- a million miles away from what is conjured rectly from SARU for the first time in a propo- up in the popular imagination by the word sition that will be managed by Tourvest. “museum”. The crowds packed in during the Off the field and on it, SARU drew closer holiday periods as people have ‘lost’ them- to its stakeholders in 2013 in some signifi- selves for hours in an audio-visual, interac- cant new ways. It is our vision for rugby to tive journey through South African rugby be an icon of inspiration to all and, with our history. Visitor reaction has been massively developments such as new initiatives in CSR positive. At last, the Springboks and South and club rugby, the creation of a world- African rugby has a home where we can class museum and academies and a cutting proudly proclaim our diverse heritage and edge approach to high performance, we are united future to the world. delivering on that ambition. On the commercial front we also moved into the travel business. This time next year Jurie Roux we’ll be in Rugby World Cup year and all eyes Chief Executive Officer will be turning towards England and venues South African Rugby Union

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 09 10 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 2013 ANNUAL REPORT INTERGRATED REPORT

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 11 GOVERNANCE STRUCTURES

The SARU 1. MEMBERS OF THE Ms Edna van Harte (Independent) Executive (front, EXECUTIVE COUNCIL appointed on 5 December 2013 left to right) is: Oregan Hoskins (Chairman) Pat Kuhn Jurie Roux (CEO), Mark Alexander Piet Heymans term expired on 4 April Mark Alexander, James Stoffberg Other invited members; Oregan Hoskins, Mputumi Damane Basil Haddad (CFO) James Stoffberg, Boet Fick Jurie Roux (CEO) Dr Ismail Jakoet Dawie Groenewald By invitation: (Company Secre- Piet Heymans External Auditors tary), (back, left Pat Kuhn • Ernest Carelse (PWC) to right) Monde Monde Tabata • Ian Jonker (PWC) Tabata, Pat Tobie Titus Internal Auditors Kuhn, Mputumi Jurie Roux (CEO) • Glen Ho (KPMG) Damane, Piet Basil Haddad (CFO) • Gareth Ferrell (KPMG) Heymans, Tobie Dr Ismail Jakoet (Company secretary) Sesi Sekhosana (SARU Finance Titus, Dawie Manager) Groenewald, 2. SARU SUB-COMMITTEES Dr Ismail Jakoet (Secretary) Boet Fick, Basil AUDIT AND RISK COMMITTEE Haddad (CFO). HUMAN RESOURCES AND Mputumi Damane (Chairman) REMUNERATION COMMITTEE appointed on 4 April 2013 Monde Tabata (Chairman) Monde Tabata (Chairman) redeployed on 4 April 2013 appointed on 4 April 2013 Raymond Fenner (Independent) Peter Hassard (Chairman) Keith Parkinson (Independent) resigned on 4 April 2013 resigned on 16 October 2013 Victor Christian (Independent)

12 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 INTEGRATED REPORT 2013

Jonathan Goldberg (Independent) 3. SARU AD HOC COMMITTEES appointed on 5 December 2013 ELITE PLAYER DEVELOPMENT Ms Nadia Mason (Independent) COMMITTEE appointed on 5 December 2013 Ms Arness Siame (Independent) James Stoffberg (Chairman) resigned on 11 June 2013 Ayanda Mjekula (Independent) Francois Davids resigned on 28 October 2013 Invited members Jurie Roux (CEO) Jurie Roux Basil Haddad (CFO) Dr Ismail Jakoet (Secretary) Dr. Ismail Jakoet (Secretary) Ingrid Mangcu (HR manager) GAME DEVELOPMENT AND FINANCE COMMITTEE TRANSFORMATION COMMITTEE

Boet Fick (Chairman) Tobie Titus (Chairman) Mark Alexander Hennie Baartman Monde Tabata Thelo Wakefield Jurie Roux (CEO) Graham Mackenzie Basil Haddad (CFO) Pumlani Mkolo Cheeky Watson NATIONAL JUDICIAL COMMITTEE Invited members Jurie Roux (CEO) Judge Lex Mpati (Chairman) Mervin Green (Secretary) Koos Basson deceased 14 September 2013 CONSTITUTIONAL SUBCOMMITTEE Adv. Jannie Lubbe appointed on 5 December 2013 Mark Alexander (Chairman) Peter Ingwersen Oregan Hoskins appointed on 4 October 2013 James Stoffberg Christo Ferreira (Secretary) Hein Mentz Adv. Andre May GAMES AND POLICIES COMMITTEE Invited members Jurie Roux Dawie Groenewald (Chairman) Dr. Ismail Jakoet James Stoffberg Christo Ferreira Randall September Vivian Lottering NATIONAL WOMEN’S COMMITTEE Louis Nel Lindsay Mould Pat Kuhn (Chairman) Hennie van der Merwe Alta Botha - Blue Invited members Siphokazi Njani - Border Jurie Roux (CEO) Gloria Sullivan - Western Province Rassie Erasmus Zilungile Ntombela - KZN (GM: High performance) Devendra Easthorpe - Valke Andy Marinos (GM: Commercial and Marketing) Christo Ferreira (Manager: Legal) Steven Roos (Secretary)

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 13 SUSTAINABILITY REPORT: WORKPLACE HIV/AIDS POLICY

1. Scope This policy applies to all South African Rugby Union (“SARU”) permanent and contracted employees. 2. Purpose The purpose of this policy is to promote a non-discriminatory working environment for em- ployees living with HIV/AIDS and ensuring that their rights are fully protected. 3. Acronyms AIDS: Acquired Immunodeficiency Disease Syndrome EEA: Employment Equity Act HCT: HIV Counselling and Testing HIV: Human Immunodeficiency Virus LRA: Labour Relations Act 4. Policy Objectives 4.1 To ensure committed leadership and facilitate decision making at a high level to drive a strong response to HIV/AIDS; 4.2 To establish a policy that helps create a healthy and safe environment for all staff of SARU; 4.3 To strengthen a coordinated, integrated and holistic response to the pandemic 5. Confidentiality All persons living with HIV/AIDS have the constitutionally entrenched right to privacy. An employee is therefore not legally required to disclose his/her HIV/AIDS status to the employ- er or other employees. Where an employee chooses to voluntarily disclose his/her HIV/AIDS status to the employer, this information may not be disclosed to others without the infected employee’s express consent. 6. Guidelines 6.1 Support Services 6.1.1 SARU’s Wellness Partners (ICAS and Discovery Health) will provide voluntary pre- testing and post- testing counseling; 6.1.2 They will offer their services to employees who wish to be tested for routine HIV and HCT, driven by the Human Resources Department on Wellness Days; 6.1.3 For cases that need ongoing emotional support and specialized services beyond the scope of SARU facilities, referral sources and material will be available e.g specific legal matters around infected staff. 6.2 Employment Conditions 6.2.1 An HIV test shall not be required, nor shall be a prospective employee be re- quired to reveal his/her HIV/AIDS status as a precondition of employment; 6.2.2 Prospective employees with HIV/AIDS shall be treated the same as those with comparable life threatening conditions such as cancer. According to medical opinion, the HIV/AIDS virus cannot be transmitted in ordinary working or social contact like shaking hands, sharing cups, glasses or crockery, hugging or kissing, using a toilet seat, washing facilities, exchanging money, coughing or sneezing, breathing, receiving mosquito or insect bites; 6.2.3 Employees with HIV/AIDS shall not be unfairly discriminated against with the employment relationship or within any employment policy or practice, but shall

14 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 INTEGRATED REPORT 2013

be governed by the same contractual obligations as all other employees; SUSTAINABILITY REPORT: 6.2.4 Employees with HIV/AIDS shall be treated in a just, humane and life-affirming way; 6.3 Non-Discrimination WORKPLACE HIV/AIDS POLICY 6.3.1 No employee may be directly or indirectly discriminated against based on his/her HIV status. Unfair discrimination against HIV positive employees by any employ- ee within SARU, based on their HIV status, will not be condoned. Such action will render employees involved subject to disciplinary action in accordance with the SARU’s disciplinary code and procedure; 6.3.2 Refusal to work with a person who has HIV/AIDS is neither an acceptable nor a valid reason for non-compliance with work requirements nor other reasonable instructions from the SARU. 6.4 Management of Employees with HIV/AIDS 6.4.1 Employees infected with HIV/AIDS are expected to meet the same performance requirements that apply to all other employees of SARU, with reasonable accom- modation where necessary within the context of this policy; 6.4.2 In accordance with Section 187 of the Labour Relations Act 66 of 1995 (‘’LRA’’), no employee shall suffer adverse consequences, whether dismissal or denial of appropriate employment opportunities, merely on the basis of having HIV/AIDS. However, where there are valid reasons related to incapacity, and the appropri- ate procedure in terms of the LRA has been followed, the services of an employ- ee with HIV/AIDS may be terminated; 6.4.3 Reasonable accommodation within the organization will be made for those employees infected with HIV/AIDS. If medically indicated, SARU will make every reasonable effort to provide alternative work; 6.4.4 If an employee is no longer able to work and/or a suitable alternative position cannot be found, the appropriate ill health and/or incapacity procedures will be applied; 6.4.5 Employees living with HIV/AIDS will have access to the applicable SARU benefits in line with the rules of The Rugby Pension Fund and Medical Aid scheme; 6.4.6 SARU recognizes that employees with HIV/AIDS may live full and active lives and therefore employees with HIV/AIDS will be treated no differently to employees with any other serious illness or condition in terms of statutory and/or SARU benefits. 6.5 Working Environment 6.5.1 SARU will make reasonable accommodation to eliminate any direct or substantial harm that an employee infected with HIVIAIDS may pose to himself/herself or to other employees or other persons; 6.5.2 SARU is not obliged to retain the services of an employee if SARU’s objective as- sessment indicates that the employee may expose others in the working environ- ment, including SARU stakeholders, to a substantial health risk where: 6.5.2.1 there is no reasonable means to mitigate such risk; or 6.5.2.2 reasonable operational requirements allow; 6.5.3 SARU will, however, as an alternative to dismissal attempt to reasonably accom- modate the employee concerned in terms of the provisions of paragraph 6 of this policy. 6.6 Alternatives to Dismissal 6.6.1 Disciplinary Action 6.6.1.1 SARU will not subject any employee infected with HIV/AIDS to arbitrary disciplinary action solely on the basis of the employee’s HIV/AIDS status; 6.6.1.2 Any employee living with HIV/AIDS who engages in acts of miscon- duct or poor performance (other than in the sense of paragraph 6.6.1.3 below) will, however, be subject to the same disciplinary action as other employees of the SARU; 6.6.1.3 Where an employee’s poor performance is as a result of HIV/AIDS, SARU will not take disciplinary action as a result thereof, but will inves-

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 15 tigate the extent of the employee’s incapacity, and consider possible alternatives short of dismissal. In the process of the investigation, the employee should be allowed the opportunity to state his/her case and to be assisted by a fellow employee. SARU may also require an employee to undergo an independent medical examination in order to establish the extent of his/her incapacity; 6.6.1.4 SARU may, after conclusion of the investigation and on the basis that the employee concerned cannot continue with normal employment due to his/her medical condition, implement the provisions of paragraph 6.7.1 below as an alternative to dismissal. 6.7 Dismissal 6.7.1 SARU may only dismiss an employee with HIV/AIDS in accordance with appropriate fair procedures and on fair grounds. This may be as a result of poor work perfor- mance or incapacity, and after alternatives to dismissal have been considered; 6.7.2 An employee living with HIV/AIDS who engages in an act of misconduct may be dismissed if the sanction of dismissal is warranted in the circumstances; 6.7.3 If an employee has become incapacitated as a result of being infected with HIVI- AIDS, then SARU will be obliged to follow any relevant guidelines and/or code prescribed regarding dismissal for incapacity; 6.7.4 The degree of the employee’s incapacity will be relevant in determining whether dismissal is appropriate under the circumstances. 7. Compliance with SARU policies All employees are required to comply with all SARU policies and procedures. For further information or advice regarding this policy, please contact the Human Resources department or visit the HR page on the intranet. 8. Annexure A HIV/AIDS – facts about the disease 8.1 HIV/AIDS is contracted and not inherited; 8.2 HIV/AIDS is caused by a virus, so called because it attacks and destroys the immune system. A person with HIV/AIDS does not die of the virus but dies of one or more of the opportunistic infections that occur as a result of the damage to their immune system; 8.3 Medical opinion is that during the period leading to the full-blown status of AIDS, a person looks and feels healthy, even after being tested positive. During this period a person is referred to as a “carrier” and can infect others. A person is seen to have AIDS when symptoms and signs appear. Early signs include weight loss, diarrhoea, fevers and skin loss; 8.4 Without appropriate care and treatment most people will deteriorate further and develop severe and often fatal illnesses. HIV testing will only take place where such testing is allowed in terms of the law, having regard to prevailing medical standards and protocols and other relevant and required standards; The Company may facilitate the HIV testing of an employee who has consented to or requested a HIV test, which shall take place in accordance with the following: 8.4.1 within a health care worker and employee-patient relationship; 8.4.2 with the informed consent and pre- and post-test counselling. 8.4.3 with clear procedures relating to confidentiality. 9. Annexure B Testing for HIV/AIDS Antibodies Testing for HIV/AIDS can only be undertaken on a voluntary basis, when requested by em- ployees. Should employees request to be tested, SARU will endeavor to identify an appro- priate counseling service. No employee shall be discriminated against based on his/her HIV/ AIDS status.

16 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 INTEGRATED REPORT 2013

10. Annexure C Employees identified as HIV/AIDS positive 10.1 Employees who are aware that they are HIV/AIDS positive can elect to inform SARU of their HIV/AIDS status. Unless there are special circumstances either in the employee’s own interest or in the interest of fellow employees, the diagnosis of HIV/AIDS is confi- dential; 10.2 As long as infected employees are able to meet acceptable standards of work per- formance and work attendance and given that medical opinion indicates that their condition is not a threat to others, their treatment should be sensitive and consistent with treatment of other employees. SARU has an obligation to provide a safe work- ing environment for all employees and clients. Thus, precautions should be taken to ensure that an employee’s condition does not present a health and/ or safety hazard to other employees or clients. CERTIFICATE OF THE COMPANY SECRETARY In my capacity as the Union’s secretary I confirm that all governance structures operated as re- quired by the union’s constitution, and that the minutes of all General Meetings, Executive Coun- cil and sub-committee meetings have been kept and are available for inspection by members. ETHICS The Union does not have an official Code of Ethics but subscribes to all fundamental ethical prin- Springbok mascot, ciples, including responsibility, honesty, fairness and respect. Bokkie, with school Issues such as bribery and corruption, fraud, legal compliance, conflicts of interest, human kids attending the rights and discrimination are monitored on an ongoing basis. SARU Coaching SARU is committed to conducting its business with due regard to the interest of all it symposium at the stakeholders and the environment. Rotary Sports The Union insists on compliance with all applicable laws and regulations as a minimum Stadium, Mthatha. standard.

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 17 TERMS OF REFERENCE FOR AUDIT & RISK COMMITTEE INTRODUCTION ROLE The Audit and Risk Committee (“the Com- The Committee has an independent role mittee”) is constituted as a committee of with accountability to both the executive the South African Rugby Union (“SARU”) council and the general meeting. The Com- and is appointed by the executive council. mittee does not assume the functions of The duties and responsibilities of the management, which remain the responsibil- members of the Committee as set out in ity of the chief executive officer and other this document. members of senior management. PURPOSE OF THE TERMS OF RESPONSIBILITIES REFERENCE The Committee has the following specific The purpose of these terms of reference responsibilities: is to set out the Committee’s composition, role, responsibilities, authority, meetings Integrated reporting and procedures. The Committee oversees integrated report- ing, and in particular must: COMPOSITION OF THE • Consider the factors and risks that COMMITTEE may impact on the integrity of the The Committee will comprise of no fewer integrated report; than four (4) and no more than six (mem- • Review the annual financial statements; bers), as per the SARU constitution. • Comment in the annual financial The Committee shall have a majority of statements on the financial state- independent members who shall serve for ments, the accounting practices and a period of two years. the effectiveness of the internal finan- An “Independent member”, in the con- cial controls; text of the Committee is any member of a • Recommend the integrated report for subcommittee of SARU who is not a current approval by the executive council; member of the executive council of any of the governing structures of a member of Combined assurance SARU. The chairman shall be an independ- The Committee will ensure that a combined ent non-executive director as per King III assurance model is applied to provide a guidelines and shall be appointed by the coordinated approach to all assurance ac- executive council. tivities, and in particular should: The President of SARU is not be eligible • Ensure that the combined assurance for appointment as a member of this received is appropriate to address all Committee but may attend meetings the significant risks facing SARU; and by invitation. • Monitor the relationship between the The members of the Committee must external assurance providers and SARU. collectively have sufficient qualifications and experience to fulfil their duties, including Internal audit an understanding of the following: finan- The Committee is responsible for the over- cial and sustainability reporting; internal seeing of internal audit, and in particular: financial controls; external audit process; • For the appointment and perfor- internal audit process; corporate law; risk mance assessment of the Internal management; sustainability issues; infor- audit service provider; mation technology governance as it relates • For recommending the approval the to integrated reporting; and governance internal audit plan; and processes within SARU. • For ensuring that the internal audit The Committee members must keep function is subject to an independent up-to-date with developments affecting quality review, as and when the Com- the required skill-set. mittee determines it appropriate.

18 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 INTEGRATED REPORT 2013

Vulisano Solomon (left), , and Delvian Samuels during the Chris Risk management council and the general meeting. Burger Petro Jack- The Committee is an integral component of On all responsibilities delegated to it by son Fund “For the the risk management process and specifi- the executive council, the Committee makes love of the Game” cally must oversee: recommendations for approval by the ex- Charity Banquet in • Financial reporting risks; ecutive council. . • Internal financial controls; The Committee acts in accordance with • Fraud risks as they relate to financial its duties and the delegated authority of the reporting; executive council as recorded in this terms • IT risks as they relate to financial of reference. It has the power to investigate reporting. any activity within the scope of its terms of reference. External audit The Committee, in the fulfilment of its The Committee is responsible for recom- duties, may call upon the chairmen of the mending the appointment of the external other executive council committees, any of auditor and to oversee the external audit the executive council members, manage- process, and in this regard must: ment, and company secretary or assurance • Nominate the external auditor for ap- providers to provide it with information, pointment by the general meeting; subject to an executive council approved • Recommend the approval of the process being followed. terms of engagement and remunera- The Committee has reasonable access tion for the external auditor; to SARU’s records, facilities, employees and • Monitor and report on the independ- any other resources necessary to discharge ence of the external auditor. its duties and responsibilities subject to an • Review the quality and effectiveness executive council approved process being of the external audit process; followed. • Consider whether the audit firm and, The Committee may form, and delegate where appropriate, the individual authority to, subcommittees and may del- partner that will be responsible for egate authority to one or more designated performing the functions of auditor, members of the Committee. are independent. The Committee has the right to obtain independent outside professional advice Authority to assist with the execution of its duties, at The Committee has no decision-making au- SARU’s cost, subject to an executive council thority in regard to its duties and is account- approved process being followed. able in this respect to both the executive

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 19 MEETINGS AND PROCEDURES bers present must elect one of the members Frequency present to act as chairman. The Committee chairman should, in consul- tation with the company secretary, decide Agenda and minutes the frequency and timing of its meetings. The Committee must establish an annual The Committee should meet as frequently work plan for each year to ensure that all as is necessary to perform its functions, but relevant matters are covered by the agendas should meet at least twice a year. Reason- of the meetings planned for that year. able time should be allocated for all audit The annual plan must ensure proper cov- committee meetings. erage of the matters laid out in the Commit- Meetings in addition to those scheduled tee plan: the more critical matters will need may, with approval of the chairman, be held to be attended to each year while other at the request of the external auditor, the matters may be dealt with on a rotation internal auditor, the chief executive officer, basis over a three-year period. chief financial officer, or at the instance of The number, timing and length of meet- the executive council. ings, and the agendas are to be determined The Committee should meet at least once in accordance with the annual plan. a year with the external and internal audi- A detailed agenda, together with sup- tors without management being present. porting documentation, must be circulated, These may be separate meetings or meet- at least one week prior to each meeting to ings held before or after a scheduled audit the members of the Committee and other committee meeting. invitees. The chairman of the Committee should Committee members must be fully pre- be present at SARU’s Annual General Meet- pared for Committee meetings, to provide ing to answer questions relating to the appropriate and constructive input on mat- Committee’s activities within the scope of ters discussed. its responsibilities. The minutes of Committee meetings The Committee’s chairman should give must be completed as soon as possible at least an oral summary of the Commit- after each meeting and circulated to the tees’ deliberations at the executive council chairman and members of the Committee meeting following each Committee meeting. for review thereof. The minutes must be for- The minutes of the Committee meeting’s mally approved by the Committee at its next proceedings should be included in the pack scheduled meeting. for the executive council’s information as Committee members shall declare their soon as they have been approved. interest whether of a general nature, or re- lated to specific agenda issues, at meetings Attendance of the Committee. The chief executive officer, chief financial officer, representatives from the external Quorum auditors, representatives from the internal A quorum for Committee meetings is a ma- audit service provider, other assurance pro- jority of members being present. viders, professional advisors and executive Invitees in attendance at Committee council members may be in attendance at meetings may participate in discussions but Committee meetings, but by invitation only, do not form part of the quorum for Commit- without the right to vote. tee meetings. The Committee members must attend all scheduled meetings of the Committee, Evaluation OPPOSITE PAGE: including meetings called on an ad hoc-basis The executive council must perform an eightman for special matters, unless prior apology, evaluation of the effectiveness of the Com- Leon Karemaker with reasons, has been submitted to the mittee every year. during a Vodacom chairman or company secretary. Cup match between The company secretary is the secretary to Approval of these terms of reference GWK Griquas and the Committee. These terms of reference were approved by the in If the incumbent chairman of the Com- the executive council and the Chairman of Kimberley. mittee is absent from a meeting, the mem- the Committee.

20 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 INTEGRATED REPORT 2013

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 21 TERMS OF REFERENCE FOR NATIONAL JUDICIAL COMMITTEE

1. MEMBERSHIP 1.1 The Committee shall comprise of not fewer than three (3) members and no more than six (6) members. The chairman is to be appointed by the Executive Council. 1.2 The Committee shall be appointed for an indefinite period and until replaced by the Executive Council, which may, at its discretion, remove any member of the Committee, at any time.

2. ROLE OF THE COMMITTEE The role of the Committee will be: 2.1 to act as legal advisers of the Executive Council and otherwise in terms of the Con- stitution, Regulations and Rules of the Union and/or as mandated or required by the Executive Council, the Chief Executive Officer or the Manager: Legal from time to time; and 2.2 to act as the delegated committee referred to in clause 17.13 of the Constitution of the Union and for which purpose the Executive Council hereby delegates its disci- plinary powers in terms of clause 17.12.2 of the Constitution, and otherwise, to the Committee, with the right to further delegate such powers to disciplinary committees or judicial officers. 3. TERMS OF REFERENCE The functions of the Committee will be to: 3.1 advise the Executive Council, the Chief Executive Officer or the Manager: Legal on all legal or quasi-legal matters as required from time to time; 3.2 act as the committee to which the Executive Council in terms of clause 17.13 of the Constitution has delegated its disciplinary powers: The executive council must estab- lish a national judicial committee where members should be independent of SARU. The executive council may delegate its disciplinary powers to the national judicial com- mittee or an ad hoc committee, either of which shall have the right, notwithstanding the provisions of this constitution, to further delegate such powers, and may for this purpose issue rules regarding – 3.3 The Committee shall have the power to take such steps as it may deem fit against any rugby body or person, as defined in the Constitution, failing to comply with or contra- vening – (a) the Constitution or any of SARU’s rules or regulations; (b) the constitution or any of the by-laws, rules and regulations of the IRB, or any body of persons or organisation to which SARU is affiliated or associated with in terms of a joint venture agreement or other agreement, including, but not limited to, SANZAR and CAR; (c) any decisions taken, resolutions adopted or rulings made by the general meeting, the executive council, the IRB or any body of persons or organisation to which SARU is affiliated or associated with in terms of a joint venture agreement or other agreement, including, but not limited to, SANZAR and CAR; (d) any contract entered into by or on behalf of SARU; and (e) the laws of the game; 3.4 act in terms of the provisions of or stipulated by the Regulations and Rules of the Un- ion or any resolutions or decisions taken by the Executive Council of the Union; 3.5 prepare and recommend amendments and/ or additions to the Constitution, Regula- tions or Rules or prepare and recommend new regulations, rules or documents that may be required from time to time;

22 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 INTEGRATED REPORT 2013

3.6 interpret any of the provisions of the Constitution, Regulations or Rules of the Union; TERMS OF REFERENCE FOR and 3.7 in general to act as mandated or required by the Executive Council, the Chief Executive NATIONAL JUDICIAL COMMITTEE Officer or the Manager: Legal from time to time. 4. MEETINGS Meetings of the Committee will be held at such time and at such venue as the Chairperson deems appropriate. 5. DELEGATION OF POWERS The Committee shall have the right to delegate its powers and functions to any other com- mittee or person. 6. CONFIDENTIALITY AND GOVERNANCE 6.1 All members of the Committee, whether or not they are employees of SARU, automat- ically undertake to be bound in full by the Code of Corporate Practices and Conduct of SARU, its Values and its Code of Ethics (“Unified Code of Ethics”). 6.2 All members of the Committee automatically undertake to observe full confidentiality re the content of all information which may come to their attention from time to time. No such information may be revealed to persons outside of SARU without the prior Hluma Zondani authorisation of the Chairman of the Executive Council. of the 6.3 Unless specifically authorised by the Chairman of the Executive Council or in terms of celebrates his try the Regulations or Rules of SARU, SANZAR or the IRB, no member of the Committee on day three of the may make statements to the media. Coca-Cola Under-16 6.4 Furthermore all members are under the obligation of the SARU Communications Pro- Grant Khomo Week. tocol

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 23 TERMS OF REFERENCE OF THE HUMAN RESOURCES & REMUNERATIONS COMMITTEE

1. ROLE AND COMPOSITION OF THE COMMITTEE The role of the Committee will be to assist the Executive Council: 1.1 To evaluate and consider specific proposals made for remuneration and other condi- tions of employment by the appropriate executive, non-executive persons and elected members of the Executive Council. 1.2 Consider and make recommendations to the Executive Council on specific remunera- tion packages for other members of management put to the Committee. 1.3 Inquire into and comment on specific policies including and relating to Recruitment and Remuneration, Performance Management, Employment Equity and Transforma- tion, Training and Development, Succession Planning and make recommendations on these issues to the Executive Council after consulting the appropriate executives and management.

Composition 1.4 The Committee will comprise of no fewer than four (4) and no more than six (mem- bers) as per SARU constitution. 1.5 The Committee should preferably comprise of members of the executive council and should have a majority of non-executive directors. The majority of the non-executive directors serving on this committee should be independent. An “Independent mem- ber”, in the context of the Committee is any member of a subcommittee of SARU who is not a current member of the executive council of any of the governing structures of a member of SARU 1.6 The chairman shall be an independent non-executive director as per King III guidelines. • Commentary: For transparency and impartiality and given the terms of reference of this committee (as in clause 1.1 above), the non-executive members of the -ex ecutive council have opted not to serve on this committee but have all of these members as independents with no affiliation to any provincial union. • This is in line with King III- “apply or explain” 2. FUNCTIONING • The Committee shall meet, adjourn or otherwise regulate its meetings as it deems fit, but it shall meet at least three times per annum. • A meeting secretary shall be appointed to keep full and proper minutes of all meetings of the Committee. • In order to perform their responsibilities, the Committee will create such struc- tures and hire such advisors and assistance, as they deem appropriate from time to time. 3. CONFIDENTIALITY AND GOVERNANCE • All members of the Committee, whether or not they are employees of SARU, automatically undertake to be bound in full by the Code of Corporate Practices and Conduct of SARU, its Values and its Code of Ethics (“Unified Code of Ethics”). • All members of the Committee automatically undertake to observe full confiden- tiality re the content of all information which may come to their attention from time to time. No such information may be revealed to persons outside of SARU without the prior authorisation of the Chairman of the Executive Council. • Unless specifically authorised by the Chairman of the Executive Council, no mem-

24 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 INTEGRATED REPORT 2013

ber of the Committee may make statements to the media. • Furthermore all members are under the obligation of the SARU Communications Protocol 4. REMUNERATION • All independent members of the Committee who are not independent non-ex- ecutive directors, as well as such other independent professionals as may be re- quested to assist or consult to the Committee on occasion, are eligible to receive such remuneration in respect of their time and contributions to the business of the Committee as may be determined by formal resolution of the Committee from time to time. • The members and attendees may also be reimbursed all travelling, hotel and other expenses properly incurred by them in or about the performance of their activities as members or attendees, including those of travelling to and from meetings of the Committee, on such basis as the Committee may determine from time to time. TERMS OF REFERENCE FOR THE FINANCE COMMITTEE 1. STATUS OF THE COMMITTEE 1.1 SARU’s constitution provides for the establishment and operation of a Finance Committee, as a sub-committee of the executive council, whose members shall be members of the executive council. 1.2 The Finance Committee has no decision making powers, but is required to make recommendations to the executive council on all matters included in its terms of reference. 1.3 The committee’s chairman should give at least an oral summary of the committees’ deliberations at the executive council meeting following the committee meeting. The minutes of the committee meeting’s proceedings should be included in the board pack for the executive council’s information as soon as they have been approved. 2. ROLE, COMPOSITION AND TERM OF THE COMMITTEE 2.1 The role of the committee is to assist the executive council in fulfilling its responsibility for overseeing SARU’s financial affairs in terms of clause 16.12.3.4 of its constitution. 2.2 The committee shall comprise of no fewer than four (4) members and no more than six (6) members, all of whom shall be members of the executive council. 2.3 The committee shall serve for a period of two years. 3. ROLE OF THE CHIEF FINANCIAL OFFICER The Chief Financial Officer is the executive responsible for SARU’s financial affairs on a day- to-day basis, subject always to the directions of the Chief Executive Officer. 4. TERMS OF REFERENCE OF THE COMMITTEE 4.1 To ensure that appropriate financial policies are established and implemented 4.2 To ensure that appropriate systems of internal control are established and implemented 4.3 To ensure that appropriate levels of authority are established and implemented 4.4 To review the draft annual operating and capital expenditure budgets as prepared by management 4.5 To deal with any other matter assigned to it from time to time by the executive council

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 25 TERMS OF REFERENCE FOR GAMES POLICIES & PROCEDURES COMMITTEE

1. INTRODUCTION • The Game Policies and Procedures Committee has all the formal delegated au- thorities and mandates from the Executive Council as are necessary to perform its role and responsibilities. • Administratively, the Game Policies and Procedures Committee is a delegated function of the SA Rugby Union. • The Game Policies and Procedures Committee will have full access to any information it needs to fulfil its responsibilities, and all employees of SARU are required to co-operate with requests made by the Game Policies and Procedures Committee in the course of its duties. • The Game Policies and Procedures Committee may obtain such internal or inde- pendent external professional advice as it considers necessary to carry out its duties. • These Terms of Reference may from time to time be amended as required, sub- ject to the approvals of the Executive Council. 2. ROLES AND RESPONSIBILITIES To manage the various issues involved in realising the objectives of the SARU “Competitions” strategy. Specifically, the Committee is required to: • Conceptualise new Competitions; • Plan and utilise age group competitions so as to provide a “stepping stone” from high school up to senior and professional rugby for the best young players, and thereby to create opportunities to develop the next generation of elite talent; • Ensure the maintenance and development of interest in matches among lower level clubs, among lower age groups and for players outside the main geographic centres; • Plan and implement a tiered competition structure which will provide a natural upwards progression of players, thereby supporting the development of Super Rugby and National teams; • Conduct feasibility studies and stakeholder surveys, where appropriate; • Liaise with the relevant Departments of SARU to arrange for sponsorships, media coverage and marketing as and when appropriate; • Co-ordinate all stakeholders within specific Competitions and between different Competitions; • Develop the Competition schedule in conjunction with the needs of broadcast- ers, sponsors and the IRB schedules; • Develop measures to measure the quality of the Competitions, as well as their performance in respect of developing market share, increasing revenues and increasing customer (spectator) satisfaction; • Plan, organise and manage actual events; • Ensure that the timing of the various Competitions does not clash or overlap, and that they are held in a sequence which is conducive to the success of the national teams and other national priorities; • Perform any other activity as may be specifically requested of it by the Executive Council of SARU from time to time.

26 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 INTEGRATED REPORT 2013

3. COMPOSITION (left), • The Game Policies and Procedures Committee will be chaired by an independent Jean de Villiers and non-executive director, to be appointed by the Executive Council. at • Various individuals having appropriate expertise and resources will be appointed the SARU Season by the Executive Council onto the Game Policies and Procedures Committee from Launch and Awards time to time. Banquet at the • The Committee shall comprise of no fewer than six (6) members and no more Lyric Theatre, Gold than eight (8) members and members shall serve for a period of two years Reef City. • he various members of the Committee will be allocated specific responsibili- ties from time to time, according to the changing needs of the Committee and of SARU. The specific responsibilities shall be communicated in writing to the members of the Committee, for their information and against which their perfor- mance shall be measured. 4. FUNCTIONING • The Game Policies and Procedures Committee shall meet, adjourn or otherwise regulate its meetings as it deems fit, but it shall meet at least twice annually. • A meeting secretary shall be appointed to keep full and proper minutes of all meetings of the Committee. • In order to perform their responsibilities, the Game Policies and Procedures Committee will create such structures and hire such advisors and assistance as they deem appropriate from time to time.

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 27 5. CONFIDENTIALITY AND GOVERNANCE • All members of the Game Policies and Procedures Committee, whether or not they are employees of SARU, automatically undertake to be bound in full by the Code of of Conduct of SARU, its Values and its Code of Ethics (“Unified Code of Ethics”). • All employees of the Game Policies and Procedures Committee automatically undertake to observe full confidentiality re the content of all information which may come to their attention from time to time. No such information may be revealed to persons outside of SARU without the prior authorisation of the Chair- man of the Executive Council. • Unless specifically authorised by the Chairman of the Executive Council, no mem- ber of the Game Policies and Procedures Committee may make statements to the media. • Furthermore all members are under the obligation of the SARU Communications Protocol 6. REMUNERATION • Independent professionals as requested to assist or consult to the Game Policies and Procedures Committee on occasions, are eligible to receive such remunera- tion in respect of their time and contributions to the business of the Game Poli- cies and Procedures Committee as may be determined by formal resolution of the Remuneration Committee of SARU from time to time. • The members and attendees may be reimbursed all travelling, hotel and other expenses properly incurred by them in or about the performance of their activi- ties as members or attendees, including those of travelling to and from meetings of the Game Policies and Procedures Committee, on such basis as the Remunera- tion Committee of SARU may determine from time to time. 7. COMMITTEE EFFECTIVENESS • The Committee shall be subject to evaluations, either through self-assessments or external evaluations, to determine its relevance and effectiveness. The -out come of the evaluations shall be presented to the Executive Council of SARU for its consideration. 8. REVIEW • These Terms of Reference shall be reviewed on a periodic basis to determine their relevance and effectiveness, by being tabled at a meeting of the Executive Council of SARU. The final of the National Inter- Provincial Sevens between Border and EP was held at GWK Stadium in Kimberley.

28 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 INTEGRATED REPORT 2013

TERMS OF REFERENCE OF ELITE PLAYER DEVELOPMENT COMMITTEE TERMS OF REFERENCE OF ELITE PLAYER DEVELOPMENT COMMITTEE 1. PREAMBLE • The Elite Player Development Committee has all the formal delegated authorities and mandates from the Executive Council as are necessary to perform its role and responsibilities. • Administratively, the Elite Player Development Committee is a delegated function of the Executive Council of SARU. • The Elite Player Development Committee will have full access to any information it needs to fulfill its responsibilities, and all employees of SARU are required to co-operate with requests made by the Elite Player Development Committee via the office of the CEO in the course of its duties. • The Elite Player Development Committee may obtain such internal or independ- ent external professional advice, as it considers necessary to carry out its duties. • These Terms of Reference may from time to time be amended as required, sub- ject to the approvals of the Executive Council. 2. ROLES AND RESPONSIBILITIES To continually monitor and assess international developments, trends and rugby best prac- tices, so as to keep South Africa at the cutting edge of . Specifically, the Com- mittee would be required to: • Think about rugby, study and set trends for the technological and philosophical development of the game, develop new knowledge of the game and disseminate such new knowledge to all levels of coaching in South Africa; • Identify deficiencies in our game and develop and implement responses to such deficiencies; • Assess, evaluate, guide, advise & monitor in particular the national & Super Rugby Coaches on all coaching matters, and provide them with a sounding board; • Devise appropriate coaching educational programmes at all levels, and oversee the arrangement and implementation of these programmes; • Develop, constantly review and implement growth and development opportuni- ties for all coaches in South Africa, including mentorship of coaches, especially for the various national and Super Rugby squads; • Oversee, monitor and co-ordinate the process of transformation throughout SA Rugby’s coaching structures; • Identify emerging coaching talent and nurture, advise and monitor the career- development and fast-tracking of said coaching talent; • Liaise with referees re coaching structures; where appropriate; • Liaise with the SARU Coaching and Hi Performance Department; • Develop, constantly review and implement a performance management system for all coaches in the employ of SARU; • Oversee criteria for appointments, assessment and evaluation of coaches; • Conduct coaching forums at all levels, to share information and ideas; • Ensure the effective utilisation of elite coaches outside of competition time, by facilitating training and mentoring of coaches at the next level of coaching (pro- vincial age group coaches, top club and top school coaches); • Each member would develop a blue print for his/her portfolio that would be distributed at all levels of rugby, each leader will ensure that his portfolio stays at the forefront in world rugby

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 29 • Each member must look to develop SARU branded products, systems, etc. that could be marketed outside of SARU – this should be the preferred system, prod- uct, etc. worldwide. This could generate huge revenue possibilities for SARU • The same program must be developed for Sevens • Perform any other activity as may be specifically requested of it by the Executive Council from time to time. 3. COMPOSITION • The Elite Player Development Committee will be chaired by an appropriate mem- ber of the SARU, to be appointed by the Executive Council. • Various individuals having appropriate expertise and resources will be appointed as leaders for each portfolio by the Executive Council onto the Elite Player Devel- opment Committee from time to time on the recommendation of the chairman and the GM: High Performance • The Elite Player Development Committee will be coordinated the General Man- ager High Performance SARU, • Members of the Springbok Management Team would not be considered • Specialist coaches/consultants to the Springbok Team would be considered for selection • The various members of the Committee will be allocated specific responsibili- ties from time to time, according to the changing needs of the Committee and of SARU. The specific responsibilities shall be communicated in writing to the members of the Committee, for their information and against which their perfor- mance shall be measured. 4. FUNCTIONING • The Elite Player Development Committee shall meet, adjourn or otherwise regu- late its meetings as it deems fit, but it shall meet at least quarterly. • A meeting secretary shall be appointed to keep full and proper minutes of all meetings of the Committee. • In order to perform their responsibilities, the Elite Player Development Com- mittee will create such structures and hire such advisors and assistance, as they deem appropriate from time to time. 5. CONFIDENTIALITY AND GOVERNANCE • All members of the Elite Player Development Committee, whether or not they are employees of SARU, automatically undertake to be bound in full by the Code of Corporate Practices and Conduct of SARU, its Values and its Code of Ethics (“Unified Code of Ethics”). • All members of the Elite Player Development Committee automatically undertake to observe full confidentiality re the content of all information which may come to their attention from time to time. No such information may be revealed to persons outside of SARU without the prior authorisation of the CEO of SARU • Unless specifically authorised by the CEO of SARU, no member of the Elite Player Development Committee may make statements to the media. • Furthermore all members are under the obligation of the SARU Communications Protocol 6. REMUNERATION • All members of the Elite Player Development Committee, as well as such other independent professionals as may be requested to assist or consult to the Elite Player Development Committee on occasion, are eligible to receive such remu- neration in respect of their time and contributions to the business of the Elite Player Development Committee as may be determined by formal resolution of the Remuneration Committee of SARU from time to time. Members excluded from being remunerated include Presidents of Unions, Executive Council mem-

30 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 INTEGRATED REPORT 2013

bers and members of SARU’s staff who serve on this committee. • The members and attendees may also be reimbursed all travelling, hotel and other expenses properly incurred by them in or about the performance of their activities as members or attendees, including those of travelling to and from meetings of the Elite Player Development Committee, on such basis as the Remu- neration Committee of SARU may determine from time to time. 7. COMMITTEE EFFECTIVENESS • The Committee shall be subject to evaluations, either through self-assessments or external evaluations, to determine its relevance and effectiveness. The outcome of the evaluations shall be presented to the Executive Council for its consideration. 8. REVIEW • These Terms of Reference shall be reviewed on a periodic basis to determine their relevance and effectiveness, by being tabled at a meeting of the Executive Council. TERMS OF REFERENCE OF THE NATIONAL WOMEN’S COMMITTEE 1. PREAMBLE The Women’s Rugby Committee has all the formal delegated authorities and mandates from the Executive Council as are necessary to perform its role and responsibilities. Administratively, the Women’s Committee is a delegated function of the Executive Council of SARU. The Women’s Rugby Committee will have access to any information its needs to fullfil its responsibilities, and all employees of SARU are required to co-operate with requests made through the office of the CEO by the Women’s Rugby Committee in the course its duties. The Women’s Rugby Committee may obtain such internal or independent external profes- sional advice, as it considers necessary to carry out its duties with the endorsement of the Executive Council for the external professional advice. These Terms of Reference may from time to time be amended as required subject to the approvals of the Executive Council. 2. ROLES AND RESPONSBILITIES To recommend policies, strategies and programmes to develop girls/Women’s rugby to ensure that South Africa has a strong, healthy participation base and the National teams are performing well on the international stage. The Committee would be required to; • Identify and recommend programmes and intitatives to enhance the recruitment of players and personnel to the game. • Recommend policies and procedures to improve governance structures at all the levels of the game. • Inform and propagate on issues affecting Women in Sport with regards to recog- nition, diversity and equity. • Advise on the marketing of the game and its programmes. Contribute towards image building. • Contribute towards Child Protection and the value systems in Women’s rugby. • Advise and monitor the development of female coaches, administrators and technical officials. Liaise with Provincial Women’s structures to give guidance and support. • Identify emerging trends in female sport and advise in order to keep abreast of development.

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 31 • Monitor and assess the performance of the National teams and make recom- mendations on personnel. • Present the aspirations and the rights of Women in Rugby to SARU Exco. • Perform any other activity as may be specifically requested of it by the Executive Council from time to time. 3. COMPOSITION • The Women’s Rugby Committee will be chaired by an appropriate member of SARU, to be appointed by the Executive Council. • Eminent Women from the structures will be appointed by the Executive Council onto the Women’s Committee for a period of four (4) years in line with World Cup/Olympic cycles. 4. FUNCTIONING • The Women’s Rugby Committee shall meet four (4) times a year. • A meeting secretary shall be appointed to keep full and proper minutes of all meetings of the Committee. • The Women’s Rugby Committee shall facilitate the establishment of Women’s Committees in all provinces. 5. CONFIDENTIALITY AND GOVERNANCE • All the members of the Women’s Rugby Committee, whether or not they are employees of SARU, automatically undertake to be bound in full by the Code of Corporate Practices and Conduct of SARU, its Values and its Code of Ethics (Uni- fied Code of Ethics). • All members of the Women’s Rugby Committee automatically read the content of all information which may come to their attention from time to time. No such information may be revealed to persons outside of SARU without the prior authorisation of the CEO of SARU. • Unless specifically authorised by the CEO of SARU, no member may make state- ments to the media. • Furthermore all members are under the obligation of the SARU Communications Protocol 6. REMUNERATION • All members of the Women’s Rugby Committee are eligible to receive such remuneration in respect of their time and contributions to the business of the Women’s Rugby Committee as may be determined by formal resolution of the Remuneration Committee of SARU from time to time. Members excluded from being reimbursed include Presidents of Unions, Executive Council Members and Members of SARU’s staff who serve on this committee. • The members may also be reimbursed all travelling, hotel and other expenses properly incurred by them in or about the performance of their activities as members or attendees, including those travelling to and from meetings of the Women’s Rugby Committee on such basis as the Remuneration Committee of SARU may determine from time to time. 7. COMMITTEE EFFECTIVENESS The Committee shall be subject to evaluation through self-assessment and evaluation by the Provincial Women’s structures to determine its effectiveness. The outcome of the evalua- tions shall be presented to the Executive Council for its consideration. 8. REVIEW • The Terms of Reference shall be reviewed on a periodic basis to determine their effectiveness, by being tabled at a meeting of the Executive Council.

32 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 INTEGRATED REPORT 2013

TERMS OF REFERENCE OF THE DEVELOPMENT AND TRANSFORMATION COMMITTEE

1. FUNCTION OF THE COMMITTEE The primary function of the Committee is to oversee the development and transformation of the game in SA Rugby with regards to the access, growth, skills development, demographic representation, social responsibilities, community involvement and participation at all levels within schools and clubs. This committee needs to make recommendations to the Executive Council in respect of structural changes and new systems, utilization of human resources and programmes to speed up development and transformation in South African Rugby based on the principle of broad-based empowerment. 2. ROLE OF THE COMMITTEE The role of the committee will be to: 2.1 Propose and recommend a development and transformation strategy for SA Rugby. 2.2 Recommend and propose development and transformation goals that will ensure the long term future of the game. 2.3 Monitor and report progress in the achievement of recommendations made. 2.4 Approve and recommend the design and implement a Performance Management sys- tem to guide fund allocation for Development and transformation related initiatives. 2.5 Assist provinces in implementing the development and transformation strategy and developing their own plans and strategies where necessary. 2.6 Approve and monitor systems to collect, manage and analyze data collected from Prov- inces. 2.7 Provide feedback to all stakeholders with respect to Development and Transformation progress. 3. CONFIDENTIALITY AND GOVERNANCE • All members of the Development and Transformation Committee, whether or not they are employees of SARU, automatically undertake to be bound in full by the Code of Corporate Practices and Conduct of SARU, its Values and its Code of Eth- ics (“Unified Code of Ethics”). • All members of the Development and Transformation Committee automatically undertake to observe full confidentiality regarding the content of all information which may come to their attention from time to time. No such information may be revealed to persons outside of SARU without the prior authorization of the Chairman of the Executive Council. • Unless specifically authorized by the Chairman of the Executive Council, no mem- ber of the Development and Transformation Committee may make statements to the media. • Furthermore all members are under the obligation of the SARU Communications Protocol.

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 33 EXECUTIVE COUNCIL REPORT GENERAL MEETING In compliance with clause 12.1 of the SARU Constitution the General Meeting assembled for an Annual General Meeting in April and two Ordinary General Meetings in August and December. SARU held three Special General Meetings in which the format of the ABSA Cur- rie Cup for 2014 and 2015 and the participation in Vodacom Super Rugby in 2014 and 2015 were debated extensively. As per clause 13.2 of the SARU Constitution, the General Meeting approved SARU’s annual budget for 2014 at the meeting held on 6 December 2013. EXECUTIVE COUNCIL The Executive Council complied with clause 15.1 of the Constitution by having thirteen meet- ings of which eight of these were scheduled meetings and five were held via teleconference. The attendance by members of the Executive Council was as follows for the period 1 Janu- ary 2013 until 31 December 2013:

Oregan Hoskins 12 Mark Alexander 13 James Stoffberg 12 Mputumi Damane 10 Dawie Groenewald 13 Piet Heymans 13 Boet Fick 7 (absent due to illness) Pat Kuhn 12 Monde Tabata 12 Tobie Titus 12 Jurie Roux 13 Basil Haddad 13 Dr I Jakoet 12 SUB COMMITTEES AND AD HOC COMMITTEES Sub- committees and ad hoc Committees were established in terms of the SARU Constitution and taking into consideration as far as possible, the principles and the best practice recom- mendations set out in the Code of Governance Principles for South Africa- 2009 King III.

The sub- committees are: • Audit & Risk Committee– had three meetings Attendance at meetings: – Monde Tabata (Chairman) - 1 meeting – Mputumi Damane (Chairman) – 2 meetings – Mr Parkinson - 2 meetings – Mr Kuhn – 3 meetings – Mr Fenner – 3 meetings – Piet Heymans – 1 meeting • Human Resources and Remuneration Committee – had two meetings Attendance at meetings: – Mr Monde Tabata (Chairman) – 2 meetings – Ms. Siame - 0 meetings (resigned on 11 June 2013) – Mr. Christian - 2 meetings OPPOSITE PAGE: – Mr. Mjekula - 0 meetings (resigned on 28 October 2013) The squad • Finance Committee – had one meeting with a 100% attendance celebrate winning • National Judicial Committee – had two meetings with 100% attendance at each one the Absa Currie Cup • Games and Policies Committee - had three meetings with 100% attendance at each one in 2013.

34 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 INTEGRATED REPORT 2013

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 35 36 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 2013 ANNUAL REPORT AUDIT & RISK COMMITTEE

For the year 31 December 2013 The audit and risk committee has pleasure in submitting this Audit and Risk Report for the year under review:

FUNCTIONS OF THE AUDIT AND RISK COMMITTEE The Audit and Risk Committee has adopted formal terms of refer- ence, delegated to it by the Executive Council, as its Audit and Risk Committee Charter. The Committee has discharged the functions in terms of its charter and ascribed as follows: • Reviewed the financial statements, culminating in a recom- mendation to the Executive Council to adopt them. In the course of its review the committee: – takes appropriate steps to ensure that the financial state- ments are prepared in accordance with the applicable ac- counting framework in SA and in the manner required by the Companies Act of South Africa – considers and, when appropriate, makes recommendations on internal financial controls; and – deals with concerns or complaints relating to accounting policies, the auditing or content of annual financial state- ments, and internal financial controls. • Reviewed the external audit reports on the annual financial statements • Recommended the appointment of the internal auditors • Recommended the risk-based internal audit plan • Reviewed the internal audit and risk management reports, OPPOSITE PAGE: and, where relevant, recommendations being made to the Simphiwe Ncwina Executive Council representing • Evaluated the effectiveness of risk management, controls Border during the and the information technology governance process Coca-Cola U18 • Reviewed the independence of the external auditor, nomi- at nated PricewaterhouseCoopers Inc. as the auditor for the the Old Peter ensuing financial year and noted the appointment of Mr Mokaba Stadium Ernest Carelse as the designated auditor in .

ANNUAL REPORT 2013 | SOUTH AFRICAN UGBY UNION | 37 • Recommended the audit fees, the engagement terms of the external auditor, the audit plan and • Reviewed and determined the nature and extent of allowable non-audit services and ap- proved the appointment for the provisions of non-audit services by the external auditor. MEMBERS OF THE AUDIT AND RISK COMMITTEE AND ATTEND- ANCE AT MEETINGS The audit and risk committee consists of non-executive members which have been listed (refer to governance structures) and meets at least three times a year in accordance with the Audit and Risk Committee Charter.

During the year under review the following four meetings were held:

DATE OF MEETINGS FOCUS AREA 18 March 2013 Financial Statements 19 July 2013 Internal Audit 22October 2013 Audit plan and engagement letters for External and Internal Auditors & Combined Assurance

The Audit and Risk Committee, is a committee of the Executive Council and therefore reports to the Executive Council by submitting the minutes of meetings at scheduled meetings. TERMS OF REFERENCE The audit and risk committee has adopted a formal terms of reference that has been ap- proved by the Executive Council. The terms of reference have been determined taking into account the statutory responsibilities and the duties assigned to it by the Executive Council. The committee’s terms of reference are reviewed annually and have been reviewed and updated during the year. ATTENDANCE The internal and external auditors, in their capacity as auditors to the entity, attended and reported at meetings of the audit and risk committee. Executive directors and relevant sen- ior managers attended meetings by invitation. FINANCIAL STATEMENTS The audit and risk committee has discharged the functions in terms of its charter and as- cribed to it as follows: • Reviewed the financial statements, culminating in a recommendation to the Executive Council to adopt them. In the course of its review the committee: – takes appropriate steps to ensure that the financial statements are prepared in accord- ance with the applicable accounting framework in SA and in the manner required by the Companies Act of South Africa – considers and, when appropriate, makes recommendations on internal financial controls • deals with concerns or complaints relating to accounting policies, the auditing or con- tent of annual financial statements, and internal financial controls, and • Reviewed the external audit reports on the annual financial statements INTERNAL AUDIT The audit and risk committee fulfils an oversight role regarding SARU’s financial statements and the reporting process, including the system of internal financial control. It is responsible for ensuring that the SARU’s internal audit function is independent and has the necessary resources, standing and authority within the entity to enable it to discharge its duties. Furthermore, the audit and risk committee oversees co-operation between the internal and external auditors, and serves as a link between the Executive Council and these functions.

38 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 AUDIT AND RISK COMMITTEE

The Audit and Risk Committee in consultation with executive management recommended the appointment of KPMG as its outsourced internal audit service provider. The Audit and Risk Committee reviewed the Internal Audit plan and recommended that the plan be approved by the Executive Council. The Internal Auditors have issued an assurance re- port for the year under review. In addition, the Committee reviewed the Combined Assurance plan prepared by the Internal Auditors and recommended the Combined Assurance plan to the Executive Council for approval. EXTERNAL AUDITOR APPOINTMENT AND INDEPENDENCE PricewaterhouseCoopers Inc. (PWC) served as SARU’s designated auditors for the 2013 financial year. The Audit and Risk Committee has reviewed the independence guidelines applied of PWC and the Independent Regulatory Board of Auditors in respect of independence and conflict of interest. The external auditors provided evidence to the audit and risk committee of their independence. The Audit and Risk Committee recommended the approval of the terms of engagement and the external audit fees paid to the external auditors. The Audit and Risk committee ensured that the nature and extent of non-audit services provided by the external auditors were in terms of the external auditor independence policy. The Audit and Risk Committee has recommended the re-appointment of Pricewaterhouse- Coopers Inc. as auditors for the 2014 Financial Year. The Audit and Risk Committee discussed and evaluated the audit plan submitted by the external auditors and has recommended the audit plan for approval to the Executive Council

INFORMATION TECHNOLOGY In accordance with the terms of reference, the audit and risk committee also reviewed the risks relating to the Information Technology (IT). The audit and risk committee is of the view that the Information Technology controls are improving and has assigned a responsi- ble executive to manage and co-ordinate the information technology risks. The Committee recommended that management improve the controls over the disaster recovery process as a matter of urgency. RISK MANAGEMENT The Executive Council is ultimately responsible for risk management and the Executive Coun- cil has delegated the specific responsibility to the Audit and Risk Committee. The Committee assisted the Executive Council to discharge its responsibilities by monitoring and assessing the role and effectiveness of the internal audit function in the context of the risk management function, ensuring that the work undertaken by the internal auditors is aligned with the risk priorities. Based on the risk assessment done in previous years and highlighted and discussed at meet- ings, it is clear that the risk profile of SARU is improving and it is clear that Management and the Executive Council is giving the requisite attention to the identified risk year on year. The internal auditors identified certain weaknesses and the Committee is satisfied that the management approach of assigning an executive to the identified weakness(es) and the perfor- mance management of such executives in relation to their risk area (s) provides adequate direc- tion to ensure that the organisation is focused on resolving weaknesses that are identified. Furthermore, the risk assessment was used as a basis for the risk-based internal audit plan.

ANNUAL REPORT 2013 | SOUTH AFRICAN UGBY UNION | 39 40 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 2013 ANNUAL REPORT OPERATIONS & FINANCE

OPERATING RESULTS The ratio of current assets to current li- SARU reported a group profit before taxation abilities was 1.2 to 1.0 (2012: 1.4 to 1.0) at of R5.1 million for the year ended 31 Decem- year-end. ber 2013, which is lower than the R6.2 million achieved in the previous financial year. PROSPECTS FOR 2014 In a very difficult economic environment, While revenue from broadcasting rights and this is considered a satisfactory operating re- sponsorships is secure and will rise moder- sult. A write back of taxation charges of R6 ately in 2014, expenditure is expected to in- million boosted the after tax profit to R11.1 crease by a similar level, resulting in another million (2012: R2.3 million). modest profit before taxation in 2014. Group revenue rose to R795 million, up 14% from the 2012 level of R700 million, due mainly to increases in broadcasting STRUCTURE rights and sponsorships revenues. The Operations & Finance division consists However, group operating expenditure in- of Finance, Legal (non-commercial) and creased by 12%, largely due to an increased Asset Care as its component departments, charge for broadcasting rights and other and continues to have responsibility for the allocations to provinces, rugby development IT and Travel functions, which are presently projects and national teams’ costs. outsourced. FINANCIAL POSITION The Group’s financial position remains FINANCE DEPARTMENT reasonably healthy, with total equity of R80 The Finance department continued in its million. However, a negative net cash flow, quest to improve financial systems and attributable mainly to the loan to the South controls, in order to provide efficient and African Rugby Heritage Trust, to establish effective financial services to its customers, the Springbok Experience museum, and an both internal and external. increase in accounts receivable and ad- vances to provincial unions, resulted in a LEGAL DEPARTMENT bank overdraft of R27 million at year-end. The Legal department (non-commercial) at- A fund-raising project is to be launched in tends to all ongoing judicial affairs including 2014 in an effort to recover the loan to the player and agent regulations, player move- Trust over the next two to three years. ments and disciplinary matters.

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 41 SOUTH AFRICA RUGBY UNION VOLUNTARY ASSOCIATION OF PERSONS

CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31 December 2013

EXECUTIVE COUNCIL O Hoskins (President) M Alexander (Deputy President) J Stoffberg (Vice President) J Roux (Chief Executive Officer) B Haddad (Chief Financial Officer) M Damane N Fick D Groenewald P Heymans P Kuhn M Tabata T Titus

The annual financial statements were independently complied uder the supervision of: PricewaterhouseCoopers Inc. ID Allen CA (SA)

42 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 STATUTORY INFORMATION Business address SARU House Tygerberg Park 163 Uys Krige Road Plattekloof 7500 Cape Town Postal address PO Box 15929 Panorama 7506 Cape Town Auditors PricewaterhouseCoopers Inc. Registered Auditor Cape Town Bankers ABSA Bank Ltd INVESTEC Bank Ltd

CONTENTS Executive Council’s Responsibilities and Approval 44 Executive Council’s Report 45 Independent Auditor’s Report 46 Consolidated Statement of Financial Position 49 Consolidated Statement of Comprehensive Income 50 Consolidated Statement of Changes in Equity 51 Consolidated Statement of Cash Flow 52 Accounting policies 53 Notes to the consolidated financial statements 64

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 43 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons EXECUTIVESouth African Rugby COUNCIL’S Union RESPONSIBILITIES Voluntary Association of persons ANDConsolidated APPROVAL Financial Statements for the year ended 31 December 2013

Executive Council's Responsibilities and Approval

The Executive Council is responsible for ensuring that adequate accounting records are maintained and is responsible for the content and integrity of the consolidated financial statements and related financial information included in this report. It is its responsibility to ensure that the consolidated financial statements fairly present the state of affairs of the group as at the end of the financial year and the results of its operations and cash flows for the period then ended, in conformity with International Financial Reporting Standards and are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates.

The Executive Council is responsible for the system of internal financial control established by the group and places considerable importance on maintaining a strong control environment. To enable it to meet these responsibilities, the Executive Council sets standards for internal control aimed at reducing the risk of error or loss in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to minimise the level of risk. These controls are monitored throughout the group and all employees are required to maintain the highest ethical standards in ensuring the group’s business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the group is on identifying, assessing, managing and monitoring all known forms of risk across the group.

The Executive Council is of the opinion, based on the information and explanations given by management, that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the consolidated financial statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or loss.

The Executive Council has reviewed the group’s cash flow forecast for the year to 31 December 2014 and, in light of this review and the current financial position, it is satisfied that the group has access to adequate resources to continue in operational existence for the foreseeable future.

The external auditors are responsible for independently auditing and reporting on the group's consolidated financial statements. The consolidated financial statements have been examined by the group's external auditors and their report is presented on pages 6 to 7.

The consolidated financial statements set out on pages 4 to 39, which have been prepared on the going concern basis, were approved by the Executive Council on ______and were signed on its behalf by:

O Hoskins (President) J Roux (Chief Executive Officer)

3

44 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons EXECUTIVESouth African Rugby COUNCIL’S Union REPORT Voluntary Association of persons Consolidated Financial Statements for the year ended 31 December 2013

Executive Council's Report

The Executive Council submits its report for the year ended 31 December 2013.

1. Review of activities

Main business and operations

The group is involved in the administration, development and promotion of the game of rugby in South Africa.

The results and state of affairs of the group are fully set out in the attached consolidated financial statements. The group financial statements comprise those of the South African Rugby Union and Springbok Supporters Club Proprietary Limited, associate companies: Eastern Province Rugby Proprietary Limited, SANZAR Proprietary Limited, SANZAR Europe S.a.r.l and a joint venture, IRB HSBC World Sevens Series: SA Event.

Net profit of the group was R 11,136,567 (2012: R 2,347,385), after taxation gain of R 5,995,316 (2012 (loss): R 3,825,089).

2. Going concern

The consolidated financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.

3. Events after the reporting period

The Executive Council is not aware of any matter or circumstance arising since the end of the financial year that will have a significant influence on the attached financial statements.

4. Membership control

The group is controlled by 14 Provincial Unions, each of which is a member of the Union. Each Provincial Union has the right to designate two persons to represent them at general meetings of members, and each such representative has one vote. The only other person entitled to vote at general meetings of members is the President, who in the case of an equality of votes, shall be entitled to a second or casting vote, provided that he has used his deliberate vote. The Union's business and activities are overseen by the members in general meeting, which has the ultimate authority in respect of, and responsibility for, its affairs.

4

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 45 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons South African Rugby Union EXECUTIVEVoluntary Association COUNCIL’S of persons REPORT (continued) Consolidated Financial Statements for the year ended 31 December 2013

Executive Council's Report

5. Subsidiary company, associate company and joint venture

The Union has the following interests:

A 51% shareholding in Springbok Supporters Club Proprietary Limited, which has as its main objective the promotion of the Springbok rugby brand. The remaining shares are held by Treble Entertainment Proprietary Limited.

A 50% shareholding in Eastern Province Rugby Proprietary Limited which conducts the business of professional rugby and related activities within the jurisdiction of the Eastern Province Rugby Union. The remaining shares are held by the Eastern Province Rugby Union. No control existed during the year under review over this entity, but there was significant influence and therefore this entity has been accounted for as an associate. Due to the company having an accumulated loss, the investment is not equity accounted for by the Group. The Union's share of losses of the associate as reported in their 2013 annual financial statements was R 4,293,361 (2012 loss: R 3,078,204).

A 33.3% shareholding in SANZAR Proprietary Limited which manages the Super Rugby and competitions played in the Southern Hemisphere. The remaining shares are held equally by the Australian Rugby Union and the Union. The company is equity accounted for by the group. All income from the broadcasting rights agreements relating to these competitions, other than the rights sold to European broadcasters, is derived directly by the Unions.The Union's share of losses of the associates, as reported in their 2013 annual financial statements was R 604,864 (2012: R604,864 (gain)).

A 33.3% shareholding in SANZAR Europe S.a.r.l., a Luxembourg based company which owns and manages the sales of broadcasting rights for the Super Rugby and The Rugby Championship competitions, to Europe broadcasters. The remaining shares are held equally by the Australian Rugby Union and the New Zealand Rugby Union. Due to the company historically having an accumulated loss, the investment is not equity accounted for by the Group. The Union's share of accumulated profits as reported in its 2013 annual financial statements was R 162,936 (2012: R 708,282 loss).

A 50% interest in the IRB HSBC World Sevens Series: SA Event joint venture, which stages and conducts all related activities for the tournament played annually at the Nelson Mandela Bay Stadium, Port Elizabeth. Eastern Province Rugby Proprietary Limited and Nelson Mandela Bay Metropolitan Municipality hold the remaining interest. All profits are distributed annually to its members. The Union's share of profit as reported in the joint venture's 2013 annual financial statements was R 4,000,000 (2012: R 6,644,513).

Further details relating to these entities are given in notes 6, 7 and 25 of the annual financial statements.

6. Executive Council

The members of the Executive Council of the Union during the year and to the date of this report are as follows:

Name O Hoskins (President) M Alexander (Deputy President) J Stoffberg (Vice President) J Roux (Chief Executive Officer) B Haddad (Chief Financial Officer) M Damane N Fick D Groenewald P Heymans P Kuhn M Tabata T Titus 5

46 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons PWC - INDEPENDENT AUDITOR’S REPORT

TO INDEPENDENTTHE MEMBERS AUDITOR’S OF THE REPORT SOUTH TO THE AFRICAN MEMBERS RUGBY OF THE SOUTH UNION AFRICAN RUGBY UNION

We have audited the consolidated financial statements of the South African Rugby Union set out on pages 4 to 39, which comprise the statement of financial position as at 31 December 2013, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and the notes, comprising a summary of significant accounting policies and other explanatory information.

Executive Council’s Responsibility for the Financial Statements

The Executive Council is responsible for the preparation and fair presentation of these financial statements in accordance with the International Financial Reporting Standards and for such internal control as the Executive Council determines is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the South African Rugby Union as at 31 December 2013, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.

PricewaterhouseCoopers Inc., No 1 Waterhouse Place, Century City 7441, P O Box 2799, Cape Town 8000 T: +27 (21) 529 2000, F: +27 (21) 529 3300, www.pwc.co.za

Africa Senior Partner: S P Kana Management Committee: H Boegman, T P Blandin de Chalain, B M Deegan, J G Louw, P J Mothibe, N V Mtetwa, T D Shango, S Subramoney, A R Tilakdari, F Tonelli region – Partner in charge: D J Fölscher The Company's principal place of business is at 2 Eglin Road, Sunninghill where a list of directors' names is available for inspection. Reg. no. 1998/012055/21, VAT reg.no. 4950174682

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 47 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons PWC - INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE SOUTH AFRICAN RUGBY UNION

Other reports required by the Companies Act

As part of our audit of the consolidated and separate financial statements for the year ended 31 December 2013, we have read the Executive Council’s Report for the purpose of identifying whether there are material inconsistencies between this report and the audited consolidated and separate financial statements. This report is the responsibility of the preparers. Based on reading this report we have not identified material inconsistencies between this report and the audited consolidated and separate financial statements. However, we have not audited this report and accordingly do not express an opinion on this report.

PricewaterhouseCoopers Inc. Director: EJ Carelse Registered Auditor Cape Town Date: ______

48 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons

CONSOLIDATEDSouth African Rugby Union STATEMENT OF FINANCIAL POSITION Voluntary Association of persons asConsolidated at 31 December Financial Statements2013 for the year ended 31 December 2013

Consolidated Statement of Financial Position as at 31 December 2013 Group Union 2013 2012 2013 2012 Notes RRRR

Assets Non-Current Assets Property, plant and equipment 4 16,198,845 13,579,679 16,181,169 13,572,611 Intangible assets 5 1,641,667 1,741,667 1,641,667 1,741,667 Investment in subsidiary 6 - - 51 51 Investments in associates 7 - 604,864 - - Deferred income tax 8 18,831,985 13,412,877 18,733,453 13,374,374 Trade and other receivables 9 18,245,323 11,635,401 18,245,323 11,635,401 54,917,820 40,974,488 54,801,663 40,324,104

Current Assets Inventories 10 433,659 3,106,662 433,659 3,102,705 Current income tax receivable - 6,143,854 - 6,110,509 Trade and other receivables 9 183,830,023 127,693,671 183,394,379 127,333,639 Cash and cash equivalents 11 1,395,716 10,319,293 50,957 10,254,264 185,659,398 147,263,480 183,878,995 146,801,117 Total Assets 240,577,218 188,237,968 238,680,658 187,125,221

Equity and Liabilities Equity Attributable to Equity Holders of Parent Retained income 79,790,456 68,723,249 79,727,286 68,044,287 79,790,456 68,723,249 79,727,286 68,044,287 Non-controlling interest 211,815 142,455 - - 80,002,271 68,865,704 79,727,286 68,044,287

Liabilities Non-Current Liabilities Deferred income 12 8,666,668 17,333,333 8,666,668 17,333,333

Current Liabilities Other financial liabilities 13 1,455,955 - 1,455,955 - Current income tax payable 31,935 - - - Trade and other payables 14 108,453,854 70,970,701 107,081,724 70,679,371 Deferred income 12 15,349,673 31,068,230 15,132,163 31,068,230 Bank overdraft 11 26,616,862 - 26,616,862 - 151,908,279 102,038,931 150,286,704 101,747,601 Total Liabilities 160,574,947 119,372,264 158,953,372 119,080,934 Total Equity and Liabilities 240,577,218 188,237,968 238,680,658 187,125,221

8 The notes on page 53 to 80 are an integral part of these financialThe notes statements. on pages 12 - 39 form an integral part of the financial statements.

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 49 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 December 2013

Group Union 2013 2012 2013 2012 Notes RRRR

Revenue 15 794,790,236 699,511,102 788,989,500 693,237,004 Other income 16 4,404,202 8,199,253 5,678,270 9,219,253 Operating expenses 17 (793,997,079) (708,560,835) (789,561,222) (703,485,160) Operating profit/(loss) 17 5,197,359 (850,480) 5,106,548 (1,028,903) Investment revenue 18 2,189,142 6,492,903 2,142,773 6,460,573 Income from equity accounted (604,865) 604,864 - - investments Interest paid 19 (1,640,385) (74,813) (1,640,385) (74,813) Profit before taxation 5,141,251 6,172,474 5,608,936 5,356,857 Taxation 20 5,995,316 (3,825,089) 6,074,063 (3,757,753) Profit for the year 11,136,567 2,347,385 11,682,999 1,599,104 Other comprehensive income - - - - Total comprehensive income 11,136,567 2,347,385 11,682,999 1,599,104

Total comprehensive income attributable to: Owners of the parent 11,067,207 2,208,126 11,682,999 1,599,104 Non-controlling interest 69,360 139,259 - - 11,136,567 2,347,385 11,682,999 1,599,104

Profit attributable to : Owners of the parent 11,067,207 2,208,126 11,682,999 1,599,104 Non-controlling interest 69,360 139,259 - - 11,136,567 2,347,385 11,682,999 1,599,104

The notes on page 53 to 80 are an integral part of these financial statements.

50 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the year ended 31 December 2013

Retained Non- Total equity income controlling interest RRR

Group Balance at 01 January 2012 66,515,123 3,196 66,518,319 Total comprehensive income for the year 2,208,126 139,259 2,347,385 Balance at 01 January 2013 68,723,249 142,455 68,865,704 Total comprehensive income for the year 11,067,207 69,360 11,136,567 Balance at 31 December 2013 79,790,456 211,815 80,002,271

Union Balance at 01 January 2012 66,445,183 - 66,445,183 Total comprehensive income for the year 1,599,104 - 1,599,104 Balance at 01 January 2013 68,044,287 - 68,044,287 Total comprehensive income for the year 11,682,999 - 11,682,999 Balance at 31 December 2013 79,727,286 - 79,727,286

The notes on page 53 to 80 are an integral part of these financial statements.

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 51 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons

South African Rugby Union CONSOLIDATEDVoluntary Association of personsSTATEMENT OF CASH FLOWS forConsolidated the year Financialended 31 Statements December for the 2013 year ended 31 December 2013

Consolidated Statement of Cash Flows Group Union 2013 2012 2013 2012 Notes RRRR

Cash flows from operating activities

Cash used in operations 21 (37,595,727) (17,659,391) (38,917,959) (16,695,601) Interest received 2,189,142 6,492,903 2,142,773 6,460,573 Interest paid (1,640,385) (74,813) (1,640,385) (74,813) Tax received (paid) 22 6,751,997 (6,091,988) 6,825,493 (6,113,912) Net cash from operating activities (30,294,973) (17,333,289) (31,590,078) (16,423,753)

Cash flows from investing activities

Purchase of property, plant and 4 (5,884,808) (12,669,075) (5,869,433) (12,662,176) equipment Sale of property, plant and equipment 4 639,342 1,166,087 639,342 1,170,997 Net cash from investing activities (5,245,466) (11,502,988) (5,230,091) (11,491,179)

Total cash, cash equivalents and (35,540,439) (28,836,277) (36,820,169) (27,914,932) bank overdrafts movement for the year Cash, cash equivalents and bank 10,319,293 39,155,570 10,254,264 38,169,196 overdrafts at the beginning of the year Total cash, cash equivalents and 11 (25,221,146) 10,319,293 (26,565,905) 10,254,264 bank overdrafts at end of the year

11 The notes on page 53 to 80 are an integral part of these financialThe notesstatements. on pages 12 - 39 form an integral part of the financial statements.

52 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons South African Rugby Union Voluntary Association of persons ACCOUNTINGConsolidated Financial POLICIES Statements for the year ended 31 December 2013 for the year ended 31 December 2013 Accounting Policies

1. Basis of preparation

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards. The consolidated financial statements have been prepared on the historical cost basis, except for the measurement of certain financial instruments at fair value, and incorporate the principal accounting policies set out below. They are presented in South African Rands.

These accounting policies are consistent with the previous period.

1.1 Consolidation

Basis of consolidation

The consolidated financial statements incorporate the consolidated financial statements of the Union and all entities, including special purpose entities, which are controlled by the Union.

Control exists when the Union has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Subsidiaries

Subsidiaries are all entities (including special purpose entities) over which the group has the power to govern the financial and operating policies generally accompanying shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the group controls another entity. The group also assesses existence of control where it does not have more than 50% of the voting power but is able to govern the financial and operating policies by virtue of de-facto control.

De-facto control may arise in circumstances where the size of the group’s voting rights relative to the size and dispersion of holdings of other shareholders give the group the power to govern the financial and operating policies, etc.

Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are de- consolidated from the date that control ceases.

Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions – that is, as transactions with the owners in their capacity as owners. The difference between fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.

When the group ceases to have control any retained interest in the entity is remeasured to its fair value at the date when control is lost, with the change in carrying amount recognised in profit or loss. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss.

Investment in associates

Associates are all entities over which the group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognised at cost, and the carrying amount is increased or decreased to recognise the investor’s share of the profit or loss of the investee after the date of acquisition. The group’s investment in associates includes goodwill identified on acquisition.

12

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 53 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons South African Rugby Union Voluntary Association of persons ACCOUNTINGConsolidated Financial POLICIES Statements for (continued) the year ended 31 December 2013 for the year ended 31 December 2013 Accounting Policies

1.1 Consolidation (continued)

If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income is reclassified to profit or loss where appropriate.

The group’s share of post-acquisition profit or loss is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income with a corresponding adjustment to the carrying amount of the investment. When the group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

The group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the case, the group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognises the amount adjacent to ‘share of profit/(loss) of associates in the income statement.

Profits and losses resulting from upstream and downstream transactions between the group and its associate are recognised in the group’s financial statements only to the extent of unrelated investor’s interests in the associates. Unrealised losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the group.

Dilution gains and losses arising in investments in associates are recognised in the income statement.

1.2 Significant judgements and sources of estimation uncertainty

In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the amounts represented in the consolidated financial statements and related disclosures. Use of available information and the application of judgement is inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material to the consolidated financial statements. Significant judgements include:

Income taxes

The group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income statement and deferred tax provisions in the period in which such determination is made.

Trade receivables

The group assesses its trade receivables and loans and receivables for impairment at the end of each reporting period. In determining whether an impairment loss should be recorded in profit or loss , the group makes judgements as to whether there is observable data indicating a measurable decrease in the estimated future cash flows from financial assets.

Estimates of residual values and useful lives of property, plant and equipment

The group reassesses annually the residual values and remaining useful lives of significant assets. The residual values of these assets have been estimated as the amount that the group would currently obtain from the disposal of each significant asset, in its location, if the asset were already of the age and in the condition expected at the end of its useful life. The useful life is estimated as the period over which an asset is expected to be available for use by the group.

13

54 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons South African Rugby Union Voluntary Association of persons Consolidated Financial Statements for the year ended 31 December 2013

Accounting Policies

1.3 Property, plant and equipment

The cost of an item of property, plant and equipment is recognised as an asset when: it is probable that future economic benefits associated with the item will flow to the group; and the cost of the item can be measured reliably.

Property, plant and equipment is initially measured at cost.

Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

Property, plant and equipment is depreciated on the straight line basis over it's expected useful lives to the estimated residual value.

Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses.

The useful lives of items of property, plant and equipment have been assessed as follows:

Item Average useful life Office furniture and equipment 3 - 8 years Computer software and equipment 3 years Motor vehicles 3 - 5 years Leasehold improvements 10 years (period of the lease)

The residual value, useful life and depreciation method of each asset is reviewed, and adjusted if appropriate, at the end of each reporting period. If the expectations differ from previous estimates, the change is accounted for as a change in accounting estimate.

The depreciation charge for each period is recognised in profit or loss unless it is included in the carrying amount of another asset.

The gain or loss arising from the derecognition of an item of property, plant and equipment is included in profit or loss when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

1.4 Intangible assets

Intangible assets are initially recognised at cost.

Intangible assets are carried at cost less any accumulated amortisation and any impairment losses.

An intangible asset is regarded as having an indefinite useful life when, based on all relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows. Amortisation is not provided for these intangible assets, but they are tested for impairment annually and whenever there is an indication that the asset may be impaired. For all other intangible assets amortisation is provided on a straight line basis over their useful life.

The amortisation period and the amortisation method for intangible assets are reviewed every period-end.

Reassessing the useful life of an intangible asset with a finite useful life after it was classified as indefinite is an indicator that the asset may be impaired. As a result the asset is tested for impairment and the remaining carrying amount is amortised over its useful life.

14

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 55 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons South African Rugby Union Voluntary Association of persons ACCOUNTINGConsolidated Financial POLICIES Statements for (continued) the year ended 31 December 2013 for the year ended 31 December 2013 Accounting Policies

1.4 Intangible assets (continued)

Internally generated brands, mastheads, publishing titles, customer lists and items similar in substance are not recognised as intangible assets.

Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values as follows:

Item Useful life Trademarks 20 years

1.5 Investment in subsidiary

In the Union’s separate consolidated financial statements, investment in subsidiary are carried at cost less any accumulated impairment.

The cost of an investment in a subsidiary is the aggregate of: the fair value, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the Union; plus any costs directly attributable to the purchase of the subsidiary.

1.6 Investments in associates

An investment in an associate is carried at cost less any accumulated impairment.

1.7 Financial instruments

Classification

The group classifies financial assets and financial liabilities into the following categories: Loans and receivables Financial liabilities at fair value through profit or loss - designated Financial liabilities measured at amortised cost

Classification depends on the purpose for which the financial instruments were obtained / incurred and takes place at initial recognition. Financial assets classified as at fair value through profit or loss which are no longer held for the purposes of selling or repurchasing in the near term may be reclassified out of that category.

Initial recognition and measurement

Financial instruments are recognised initially when the group becomes a party to the contractual provisions of the instruments.

The group classifies financial instruments, or their component parts, on initial recognition as a financial asset, a financial liability or an equity instrument in accordance with the substance of the contractual arrangement.

Financial instruments are measured initially at fair value, except for equity investments for which a fair value is not determinable, which are measured at cost and are classified as available-for-sale financial assets.

For financial instruments which are not at fair value through profit or loss, transaction costs are included in the initial measurement of the instrument.

Transaction costs on financial instruments at fair value through profit or loss are recognised in profit or loss.

15

56 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons South African Rugby Union Voluntary Association of persons Consolidated Financial Statements for the year ended 31 December 2013

Accounting Policies

1.7 Financial instruments (continued)

Impairment of financial assets

At each reporting date the group assesses all financial assets, other than those at fair value through profit or loss, to determine whether there is objective evidence that a financial asset or group of financial assets has been impaired.

For amounts due to the group, significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy and default of payments are all considered indicators of impairment.

In the case of equity securities classified as available-for-sale, a significant or prolonged decline in the fair value of the security below its cost is considered an indicator of impairment. If any such evidence exists for available- for-sale financial assets, the cumulative loss - measured as the difference between the acquisition cost and current fair value, less any impairment loss on that financial asset previously recognised in profit or loss - is removed from equity as a reclassification adjustment to other comprehensive income and recognised in profit or loss.

Impairment losses are recognised in profit or loss.

Impairment losses are reversed when an increase in the financial asset's recoverable amount can be related objectively to an event occurring after the impairment was recognised, subject to the restriction that the carrying amount of the financial asset at the date that the impairment is reversed shall not exceed what the carrying amount would have been had the impairment not been recognised.

Reversals of impairment losses are recognised in profit or loss except for equity investments classified as available-for-sale.

Impairment losses are not subsequently reversed for available-for-sale equity investments which are held at cost because fair value was not determinable.

Where financial assets are impaired through use of an allowance account, the amount of the loss is recognised in profit or loss within operating expenses. Subsequent recoveries of amounts previously written off are credited against operating expenses.

Trade and other receivables

Trade receivables are measured at initial recognition at fair value, and are subsequently measured at amortised cost using the effective interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in profit or loss when there is objective evidence that the asset is impaired. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than 30 days overdue) are considered indicators that the trade receivable is impaired. The allowance recognised is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition.

The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in profit or loss within operating expenses. When a trade receivable is uncollectable, it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited against operating expenses in profit or loss.

Trade and other receivables are classified as loans and receivables.

If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets.

16

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 57 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons South African Rugby Union Voluntary Association of persons ACCOUNTINGConsolidated Financial POLICIES Statements for (continued) the year ended 31 December 2013 for the year ended 31 December 2013 Accounting Policies

1.7 Financial instruments (continued)

Trade and other payables

Trade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method. If collection is expected in one year or less ( or in normal operating cycle of business if longer), they are classified as current liabilities. If not, they are presented as non-current liabilities.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquid investments with original maturities of 3 months or less and bank overdrafts that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These are initially and subsequently recorded at fair value.

1.8 Income tax

Current income tax assets and liabilities

Current income tax for current and prior periods is, to the extent unpaid, recognised as a liability. If the amount already paid in respect of current and prior periods exceeds the amount due for those periods, the excess is recognised as an asset.

Current income tax liabilities (assets) for the current and prior periods are measured at the amount expected to be paid to (recovered from) the tax authorities, using the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax assets and liabilities

A deferred tax liability is recognised for all taxable temporary differences, except to the extent that the deferred tax liability arises from the initial recognition of an asset or liability in a transaction which at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss).

A deferred tax asset is recognised for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised. A deferred tax asset is not recognised when it arises from the initial recognition of an asset or liability in a transaction at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss).

A deferred tax asset is recognised for the carry forward of unused tax losses to the extent that it is probable that future taxable profit will be available against which the unused tax losses can be utilised.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Income tax expenses

Current and deferred taxes are recognised as income or an expense and included in profit or loss for the period, except to the extent that the tax arises from: a transaction or event which is recognised, in the same or a different period, in other comprehensive income, or a business combination.

17

58 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons South African Rugby Union Voluntary Association of persons Consolidated Financial Statements for the year ended 31 December 2013

Accounting Policies

1.8 Income tax (continued)

Current tax and deferred taxes are charged or credited in other comprehensive income if the tax relates to items that are credited or charged, in the same or a different period, in other comprehensive income.

Current tax and deferred taxes are charged or credited directly to equity if the tax relates to items that are credited or charged, in the same or a different period, directly in equity.

1.9 Leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

Operating leases – lessee

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The difference between the amounts recognised as an expense and the contractual payments are recognised as an operating lease liability. This liability is not discounted.

Any contingent rents are expensed in the period they are incurred.

1.10 Inventories

Inventories are measured at the lower of cost and net realisable value on the first-in, first-out (FIFO) basis.

Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses.

The cost of inventories comprises of all costs of purchase (excluding any borrowing costs), costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

1.11 Impairment of non-financial assets

The group assesses at each end of the reporting period whether there is any indication that an asset may be impaired. If any such indication exists, the group estimates the recoverable amount of the asset.

Irrespective of whether there is any indication of impairment, the group also: tests intangible assets with an indefinite useful life or intangible assets not yet available for use for impairment annually by comparing its carrying amount with its recoverable amount. This impairment test is performed during the annual period and at the same time every period. tests goodwill acquired in a business combination for impairment annually.

If there is any indication that an asset may be impaired, the recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the recoverable amount of the cash-generating unit to which the asset belongs is determined.

The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and its value in use.

If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. That reduction is an impairment loss.

An impairment loss of assets carried at cost less any accumulated depreciation or amortisation is recognised immediately in profit or loss. Any impairment loss of a revalued asset is treated as a revaluation decrease.

18

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 59 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons South African Rugby Union Voluntary Association of persons ACCOUNTINGConsolidated Financial POLICIES Statements for (continued) the year ended 31 December 2013 for the year ended 31 December 2013 Accounting Policies

1.11 Impairment of non-financial assets (continued)

An entity assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for assets other than goodwill may no longer exist or may have decreased. If any such indication exists, the recoverable amounts of those assets are estimated.

The increased carrying amount of an asset other than goodwill attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior periods.

A reversal of an impairment loss of assets carried at cost less accumulated depreciation or amortisation other than goodwill is recognised immediately in profit or loss. Any reversal of an impairment loss of a revalued asset is treated as a revaluation increase.

1.12 Employee benefits

Pension Obligations

The group's employees are members of The Rugby Pension Fund. The fund is generally funded through payments to trustee-administered funds, determined by periodic actuarial calculations. The fund has a defined contribution plan and a defined benefit plan.

A defined contribution plan is a pension plan under which the employer and employee pays fixed contributions into the fund. The Group has no legal or constructive obligations to pay further contributions to the fund.

For defined contribution plans, the Group pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expenses once they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or reduction in the future payments is available.

A defined benefit plan is a pension plan under which the employer and employee pays fixed contributions into the the fund. Defined benefit plans define the amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and level of remuneration prior to retirement.

The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability.

The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets, together with adjustments for unrecognised past-service costs.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to profit and loss in the period in which they arise.

Past-service costs are recognised immediately in income, unless the changes to the pension plan are conditional on the employees remaining in service for a specified period of time (the vesting period). In this case, the past-service costs are amortised on a straight-line basis over the vesting period.

Short-term employee benefits

The cost of short-term employee benefits, (those payable within 12 months after the service is rendered, such as paid vacation leave and sick leave, bonuses, and non-monetary benefits such as medical care), are recognised in the period in which the service is rendered and are not discounted.

19

60 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons South African Rugby Union Voluntary Association of persons Consolidated Financial Statements for the year ended 31 December 2013

Accounting Policies

1.12 Employee benefits (continued)

The expected cost of compensated absences is recognised as an expense as the employees render services that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs.

The expected cost of profit sharing and bonus payments is recognised as an expense when there is a legal or constructive obligation to make such payments as a result of past performance.

Termination benefits

Termination benefits are payable when employment is terminated by the group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The group recognises termination benefits when it is demonstrably committed to either: terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal; or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the end of the reporting period are discounted to their present value.Defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.

Other post-employment obligations

The group provides post-retirement healthcare benefits to its retirees. The entitlement to these benefits is usually conditional on the employee remaining in service up to retirement age and the completion of a minimum service period. The expected costs of these benefits are accrued over the period of employment using the same accounting methodology as used for defined benefit pension plans. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise. These obligations are valued annually by independent qualified actuaries.

1.13 Provisions and contingencies

Provisions are recognised when: the group has a present obligation as a result of a past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and a reliable estimate can be made of the obligation.

The amount of a provision is the present value of the expenditure expected to be required to settle the obligation.

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the reimbursement shall be recognised when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement shall be treated as a separate asset. The amount recognised for the reimbursement shall not exceed the amount of the provision.

Provisions are not recognised for future operating losses.

If an entity has a contract that is onerous, the present obligation under the contract shall be recognised and measured as a provision.

When there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.

Contingent assets and contingent liabilities are not recognised.

20

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 61 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons South African Rugby Union Voluntary Association of persons ACCOUNTINGConsolidated Financial POLICIES Statements for (continued) the year ended 31 December 2013 for the year ended 31 December 2013 Accounting Policies

1.14 Revenue

Revenue is measured at the fair value of the consideration received or receivable and represents the amounts receivable for goods and services provided in the normal course of business, net of trade discounts and volume rebates, and value added tax.

Sale of goods

Revenue from the sale of goods is recognised when the group has transferred to the buyer the significant risks and rewards of ownership of the goods, the group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the group, and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Sponsorship income

Long term sponsorship income is recognised on the basis of either apportionment over time, or apportionment over the number of matches completed if the sponsorship income relates to a specific tournament. Deferred revenue is recognised when the consideration received, is in respect of future periods.

Product sponsorships are also accounted for. Where the product has an economic benefit of some duration, the carrying value is capitalised and amortised over the useful life of the asset. Where the benefit relates only to the current period, the product is expensed (i.e. the net effect on the accounting records is nil).

Sales of broadcasting rights

Proceeds from the sale of broadcasting rights are accounted for on a due and payable basis. Deferred revenue is recognised in respect of broadcasting rights, when the consideration received is in respect of competitions that are to be broadcasted in future financial periods.

Interest income

Interest income is recognised on a time-proportion basis using the effective interest method. When a receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at original effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on impaired loans is recognised using the original effective interest rate.

Royalty income

Royalty income is recognised on an accrual basis in accordance with the substance of the relevant agreements.

1.15 Borrowing costs

All borrowing costs are recognised as an expense in the period in which they are incurred.

1.16 Translation of foreign currencies

Functional and presentation currency

Items included in the consolidated financial statements of each of the group entities are measured using the currency of the primary economic environment in which the entity operates (functional currency).

The consolidated consolidated financial statements are presented in Rand which is the group functional and presentation currency.

21

62 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons South African Rugby Union Voluntary Association of persons Consolidated Financial Statements for the year ended 31 December 2013

Accounting Policies

1.16 Translation of foreign currencies (continued)

Foreign currency transactions

A foreign currency transaction is recorded, on initial recognition in Rands, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

At the end of the reporting period: foreign currency monetary items are translated using the closing rate; non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction; and non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.

Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous consolidated financial statements are recognised in profit or loss in the period in which they arise.

When a gain or loss on a non-monetary item is recognised in other comprehensive income and accumulated in equity, any exchange component of that gain or loss is recognised in other comprehensive income and accumulated in equity. When a gain or loss on a non-monetary item is recognised in profit or loss, any exchange component of that gain or loss is recognised in profit or loss.

Cash flows arising from transactions in a foreign currency are recorded in Rands by applying to the foreign currency amount the exchange rate between the Rand and the foreign currency at the date of the cash flow.

22

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 63 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons South African Rugby Union Voluntary Association of persons NOTESConsolidated TO Financial THE CONSOLIDATED Statements for the year ended FINANCIAL 31 December 2013STATEMENTS for the year ended 31 December 2013 Notes to the Consolidated Financial Statements

2. New Standards and Interpretations

2.1 Standards and interpretations effective and adopted in the current year

In the current year, the group has adopted the following standards and interpretations that are effective for the current financial year and that are relevant to its operations:

Standard/ Interpretation: Effective date: Years beginning on or after IAS28 (Revised 2011), Associates and joint ventures 01 January 2013 IFRS 10 Consolidated Financial Statements 01 January 2013 IAS 27 Separate Financial Statements 01 January 2013 IFRS 11 Joint Arrangements 01 January 2013 IFRS 12 Disclosure of Interests in Other Entities 01 January 2013 IFRS 13 Fair Value Measurement 01 January 2013 IAS 1 Presentation of Financial Statements 01 July 2012 IAS 19 Employee Benefits Revised 01 January 2013 Disclosures – Offsetting Financial Assets and 01 January 2013 Financial Liabilities (Amendments to IFRS 7) Government Loans (Amendment to IFRS 1) 01 January 2013 IFRS 1 – Annual Improvements for 2009 – 2011 cycle 01 January 2013 IAS 1 – Annual Improvements for 2009 – 2011 cycle 01 January 2013 IAS 16 – Annual Improvements for 2009 – 2011 cycle 01 January 2013 IAS 32 – Annual Improvements for 2009 – 2011 cycle 01 January 2013 IAS 34 – Annual Improvements for 2009 – 2011 cycle 01 January 2013 Consolidated Financial Statements, Joint 01 January 2013 Arrangements and Disclosures of Interests in Other Entities: Transition Guidance.

2.2 Standards and interpretations not yet effective

The group has chosen not to early adopt the following standards and interpretations, which have been published and are mandatory for the group’s accounting periods beginning on or after 01 January 2014 or later periods:

Standard/ Interpretation: Effective date: Years beginning on or after IFRS 9 Financial Instruments 01 January 2015 Offsetting Financial Assets and Financial Liabilities 01 January 2014 (Amendments to IAS 32)

The aggregate impact of the initial application of the statements and interpretations on the group's consolidated financial statements is expected to be immaterial.

23

64 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons South African Rugby Union Voluntary Association of persons Consolidated Financial Statements for the year ended 31 December 2013

Notes to the Consolidated Financial Statements

3. Risk management

Financial risk management

The group’s activities expose it to a variety of financial risks: market risk (including currency risk and fair value interest rate risk), credit risk and liquidity risk. The group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the group’s financial performance. The group uses derivative financial instruments to hedge certain risk exposures.

Liquidity and interest rate risk

The group has a number of short term deposits with banks and also number of loans granted to the Unions which result in risk from interest rate changes. The interest rates charged on these assets are linked to the prime overdraft lending rate. A 2% increase/decrease in the prime interest rate would result in a R 149,114 (2012: R501,375) change in the interest.

The table below analyses the group’s non-derivative financial liabilities and net-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the statement of financial position date to the contractual maturity date. Derivative financial liabilities are included in the analysis if their contractual maturities are essential for an understanding of the timing of the cash flows. The amounts disclosed in the table are the contractual undiscounted cash flows.

Group

At 31 December 2013 Less than 1 year Trade and other payables 108,453,854 Bank overdraft 26,616,862

At 31 December 2012 Less than 1 year Trade and other payables 70,970,701

Union At 31 December 2013 Less than 1 year Trade and other payables 107,081,724 Bank overdraft 26,616,862

At 31 December 2012 Less than 1 year Trade and other payables 70,679,371

Credit risk

Credit risk arises from cash and cash equivalents, deposits with banks and financial institutions as well as credit exposures to sponsors, including outstanding receivables and committed transactions.

Financial assets exposed to credit risk at year end were as follows:

` jjjjjj Group - 2013 Group - 2012 Union - 2013 Union - 2012 RRRR Financial instrument Trade and other receivables 202,075,346 139,329,072 201,639,702 138,969,040 Cash and cash equivalents 1,395,716 10,319,293 50,957 10,254,264

24

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 65 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons South African Rugby Union Voluntary Association of persons NOTESConsolidated TO Financial THE CONSOLIDATED Statements for the year ended FINANCIAL 31 December 2013STATEMENTS for the year ended 31 December 2013 Notes to the Consolidated Financial Statements

3. Risk management (continued)

Foreign exchange risk

The group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US dollar. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investments in foreign operations.

Management has set up a policy to manage their foreign exchange risk against their functional currency. To manage their foreign exchange risk arising from future commercial transactions and recognised assets and liabilities, entities in the group use forward contracts. Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a currency that is not the entity’s functional currency.

At 31 December 2013, if the currency had weakened/strengthened by 11% against the British Pound with all other variables held constant, post-tax (loss)/profit for the year would have been R 129,640 (2012: R 251,649) higher/lower, mainly as a result of foreign exchange gains/losses on translation of Pound denominated trade receivables.

At 31 December 2013, if the currency had weakened/strengthened by 11% against the US Dollar with all other variables held constant, post-tax (loss)/profit for the year would have been R 32,096 (2012: R46,229) higher/lower, mainly as a result of foreign exchange gains/losses on translation of USD denominated trade receivables.

Fair value estimation

The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for IFRS 7 disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the group for similar financial instruments.

4. Property, plant and equipment

Group 2013 2012 Cost Accumulated Carrying Cost Accumulated Carrying depreciation value depreciation value Office furniture and 5,044,384 (1,546,747) 3,497,637 6,246,196 (1,449,041) 4,797,155 equipment Motor vehicles 928,947 (75,635) 853,312 266,947 (22,246) 244,701 Computer software and 10,392,714 (5,111,665) 5,281,049 9,177,105 (7,562,739) 1,614,366 equipment Leasehold improvements 7,326,802 (759,955) 6,566,847 6,981,637 (58,180) 6,923,457 Total 23,692,847 (7,494,002) 16,198,845 22,671,885 (9,092,206) 13,579,679

Union 2013 2012 Cost Accumulated Carrying Cost Accumulated Carrying depreciation value depreciation value Office furniture and 4,935,592 (1,512,018) 3,423,574 6,211,147 (1,415,499) 4,795,648 equipment Motor vehicles 928,947 (75,635) 853,312 266,947 (22,246) 244,701 Computer software and 10,357,665 (5,020,229) 5,337,436 9,083,689 (7,474,884) 1,608,805 equipment Leasehold improvements 7,326,802 (759,955) 6,566,847 6,981,637 (58,180) 6,923,457 Total 23,549,006 (7,367,837) 16,181,169 22,543,420 (8,970,809) 13,572,611

25

66 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons South African Rugby Union Voluntary Association of persons Consolidated Financial Statements for the year ended 31 December 2013

Notes to the Consolidated Financial Statements

4. Property, plant and equipment (continued)

Reconciliation of property, plant and equipment - Group - 2013

Opening Additions Disposals Depreciation Total balance Furniture and fixtures 4,797,155 94,210 (591,521) (802,207) 3,497,637 Motor vehicles 244,701 662,000 - (53,389) 853,312 Computer software and 1,614,366 4,783,434 - (1,116,751) 5,281,049 equipment Leasehold improvements 6,923,457 345,164 - (701,774) 6,566,847 13,579,679 5,884,808 (591,521) (2,674,121) 16,198,845

Reconciliation of property, plant and equipment - Group - 2012

Opening Additions Disposals Depreciation Total balance Office furniture and equipment 1,407,368 4,538,955 (461,550) (687,618) 4,797,155 Motor vehicles 434,130 266,947 (295,809) (160,567) 244,701 Computer software and 2,060,668 881,536 (118,689) (1,209,149) 1,614,366 equipment Leasehold improvements - 6,981,637 - (58,180) 6,923,457 3,902,166 12,669,075 (876,048) (2,115,514) 13,579,679

Reconciliation of property, plant and equipment - Union - 2013

Opening Additions Disposals Depreciation Total balance Office furniture and equipment 4,795,648 20,467 (591,521) (801,020) 3,423,574 Motor vehicles 244,701 662,000 - (53,389) 853,312 Computer software and 1,608,805 4,841,802 - (1,113,171) 5,337,436 equipment Leasehold improvements 6,923,457 345,164 - (701,774) 6,566,847 13,572,611 5,869,433 (591,521) (2,669,354) 16,181,169

Reconciliation of property, plant and equipment - Union - 2012

Opening Additions Disposals Depreciation Total balance Office furniture and equipment 1,404,105 4,538,955 (462,294) (685,118) 4,795,648 Motor vehicles 434,131 266,947 (295,810) (160,567) 244,701 Computer software and 2,056,663 874,637 (122,854) (1,199,641) 1,608,805 equipment Leasehold improvements - 6,981,637 - (58,180) 6,923,457 3,894,899 12,662,176 (880,958) (2,103,506) 13,572,611

5. Intangible assets

Group 2013 2012 Cost Accumulated Carrying Cost Accumulated Carrying amortisation value amortisation value Trademark 2,000,000 (358,333) 1,641,667 2,000,000 (258,333) 1,741,667

26

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 67 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons South African Rugby Union Voluntary Association of persons NOTESConsolidated TO Financial THE CONSOLIDATED Statements for the year ended FINANCIAL 31 December 2013STATEMENTS for the year ended 31 December 2013 Notes to the Consolidated Financial Statements

5. Intangible assets (continued)

Union 2013 2012 Cost Accumulated Carrying Cost Accumulated Carrying amortisation value amortisation value Trademark 2,000,000 (358,333) 1,641,667 2,000,000 (258,333) 1,741,667

Reconciliation of intangible assets - Group - 2013

Opening Amortisation Total balance Trademark 1,741,667 (100,000) 1,641,667

Reconciliation of intangible assets - Group - 2012

Opening Amortisation Total balance Trademark 1,841,667 (100,000) 1,741,667

Reconciliation of intangible assets - Union - 2013

Opening Amortisation Total balance Trademark 1,741,667 (100,000) 1,641,667

Reconciliation of intangible assets - Union - 2012

Opening Amortisation Total balance Trademark 1,841,667 (100,000) 1,741,667

6. Investment in subsidiary

Name of company Carrying Carrying amount 2013 amount 2012 Springbok Supporters Club Proprietary Limited 51 51

The carrying amount of the subsidiary is shown net of impairment losses, where necessary.

7. Investments in associates Group Union 2013 2012 2013 2012 RRRR

Eastern Province Rugby Proprietary - - - - Limited SANZAR Proprietary Limited - 604,864 - - SANZAR Europe S.a.r.l - - - - - 604,864 - -

The carrying amounts of associates are shown net of impairment losses, where necessary.

27

68 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons South African Rugby Union Voluntary Association of persons Consolidated Financial Statements for the year ended 31 December 2013

Notes to the Consolidated Financial Statements

7. Investments in associates (continued)

The gross results, of the Union's unlisted principal associates and of their assets and liabilities, which are based on the unaudited management accounts as at 31 December 2013, are as follows:

Assets Liabilities Revenue Loss / Accumulated (profit) loss / (profit) Eastern Province 6,874,601 38,444,459 66,649,107 8,586,722 31,580,818 Rugby Proprietary Limited (50%) SANZAR Proprietary 12,439,025 (12,439,025) 29,199,514 - - Limited (33.3%) SANZAR Europe S.a.r.l 238,297,620 (237,808,813) 81,153,995 (4,575,902) (488,807) (33.3%) 257,611,246 (211,803,379) 177,002,616 4,010,820 31,092,011

Since acquisition of the investment in associates, the cumulative losses at acquisition have not been recognised.

8. Deferred income tax

Deferred tax asset

Accounts receivable 21,000 21,000 21,000 21,000 Prepayments - (72,479) - (72,479) Provisions 133,312 1,863,733 95,964 1,845,533 Deferred revenue 12,264,547 11,622,247 12,203,364 11,601,944 Fixed assets (15,248) (21,624) (15,248) (21,624) Assessed loss 6,428,374 - 6,428,373 - 18,831,985 13,412,877 18,733,453 13,374,374

Reconciliation of deferred tax asset

At beginning of the year 13,412,877 20,232,108 13,374,374 20,079,138 Income statement charge 5,419,108 (6,819,231) 5,359,079 (6,704,764) 18,831,985 13,412,877 18,733,453 13,374,374

28

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 69 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons

South African Rugby Union NOTESVoluntary TO Association THE ofCONSOLIDATED persons FINANCIAL STATEMENTS forConsolidated the year Financialended 31 Statements December for the 2013 year ended 31 December 2013

Notes to the Consolidated Financial Statements Group Union 2013 2012 2013 2012 RRRR

9. Trade and other receivables

Trade receivables 89,304,100 43,490,286 88,867,456 43,130,254 Impairment on trade receivables (100,000) (100,000) (100,000) (100,000) 89,204,100 43,390,286 88,767,456 43,030,254 Amounts receivable from provincial 5,849,340 10,014,162 5,849,340 10,014,162 Unions Loans to provincial Unions 35,626,247 24,609,808 35,627,247 24,609,808 IRB Sevens PE - JV loan account - 7,943,604 - 7,943,604 Prepayments 9,274,687 33,950,975 9,274,687 33,950,975 Loan to The South African Rugby 36,901,751 - 36,901,751 - Heritage Trust Accrued income 16,290,669 12,512,839 16,290,669 12,512,839 Other receivables 8,928,552 6,907,398 8,928,552 6,907,398 202,075,346 139,329,072 201,639,702 138,969,040

Total trade and other receivables 202,075,346 139,329,072 201,639,702 138,969,040 Less: non current portion of loans to (18,245,323) (11,635,401) (18,245,323) (11,635,401) provincial Unions 183,830,023 127,693,671 183,394,379 127,333,639

The bank overdraft is secured by the General Cession by the borrower in respect of receivables, refer to note 11

All non-current receivables are due within two to five years. The non-current receivables are unsecured and interest is charged, based on the prime interest rate less 2%. Prepayments includes R 1,800,000 (2012: R 27,800,000) relating to payments to provincial Unions for broadcasting rights.

Included in trade and other receivables is a loan to The South African Rugby Heritage Trust. The loan is broken down as follows:

The South African Rugby Heritage Trust

Fixed assets 32,408,272 32,408,272 Merchandise 1,657,085 - 1,657,085 - Working capital 2,836,394 - 2,836,394 - 36,901,751 - 36,901,751 -

Trade and other receivables past due but not impaired

Trade and other receivables which are less than 3 months past due are not considered to be impaired. At 31 December 2013,R10,181,979 (2012: R 2,462,559) were past due but not impaired.

The ageing of amounts past due but not impaired is as follows:

Up to 3 months 3,453,910 589,581 3,453,910 589,581 3 to 6 months 6,728,069 1,872,978 6,728,069 1,872,978 10,181,979 2,462,559 10,181,979 2,462,559

29

70 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons

South African Rugby Union Voluntary Association of persons Consolidated Financial Statements for the year ended 31 December 2013

Notes to the Consolidated Financial Statements Group Union 2013 2012 2013 2012 RRRR

9. Trade and other receivables (continued)

Trade and other receivables impaired

At 31 December 2013, trade and other receivables of R - (2012: R -) were impaired and provided for. The individually impaired receivables mainly relate to recoverable expenditure which is now considered to be doubtful of recovery.

Currencies

The carrying amount of trade and other receivables are denominated in the following currencies:

South African Rand 97,732,323 135,568,024 97,732,323 135,207,992 US Dollar 291,780 583,662 291,780 583,662 British Pound 1,178,549 3,177,386 1,178,549 3,177,386 99,202,652 139,329,072 99,202,652 138,969,040

Reconciliation of provision for impairment of trade and other receivables

Opening balance 100,000 1,500,329 100,000 1,500,329 Provision for impairment - 100,000 - 100,000 Amounts written off - (1,500,329) - (1,500,329) 100,000 100,000 100,000 100,000

Amounts charged to the provision account are generally written off when there is no expectation recovery.

The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable mentioned above. The Union does not hold any collateral as security.

10. Inventories

Merchandise 433,659 3,106,662 433,659 3,102,705

11. Cash and cash equivalents

For the purpose of the statement of cash flows, cash, cash equivalents and bank overdrafts include total cash assets less bank overdrafts:

Cash 50,957 46,359 50,957 46,359 Bank and short term bank deposits 1,344,759 10,272,934 - 10,207,905 Net bank overdraft (26,616,862) - (26,616,862) - (25,221,146) 10,319,293 (26,565,905) 10,254,264

Current assets 1,395,716 10,319,293 50,957 10,254,264 Current liabilities (26,616,862) - (26,616,862) - (25,221,146) 10,319,293 (26,565,905) 10,254,264

The bank overdraft is secured by the General Cession by the borrower in respect of receivables.

30

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 71 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons

South African Rugby Union NOTESVoluntary TO Association THE ofCONSOLIDATED persons FINANCIAL STATEMENTS forConsolidated the year Financialended 31 Statements December for the 2013 year ended 31 December 2013

Notes to the Consolidated Financial Statements Group Union 2013 2012 2013 2012 RRRR

11. Cash and cash equivalents (continued)

Credit quality of cash at bank and short term deposits, excluding cash on hand

The credit quality of cash at bank and short term deposits, excluding cash on hand that are neither past due nor impaired can be assessed by reference to external credit ratings or historical information about counterparty default rates:

Credit rating ABSA (A-) 1,344,759 10,060,939 - 9,995,910 Investec Bank Limited (BBB) - 211,995 - 211,955 1,344,759 10,272,934 - 10,207,865

12. Deferred income

Deferred income comprise of the following:

Sponsorships 2,761,159 2,612,604 2,761,159 2,612,604 Broadcasting rights 17,411,413 26,000,003 17,411,413 26,000,003 Grants 3,843,769 19,788,956 3,626,259 19,788,956 24,016,341 48,401,563 23,798,831 48,401,563

Non-current liabilities 8,666,668 17,333,333 8,666,668 17,333,333 Current liabilities 15,349,673 31,068,230 15,132,163 31,068,230 24,016,341 48,401,563 23,798,831 48,401,563

13. Other financial liabilities

At fair value through profit or loss - designated Foreign exchange contract 1,455,955 - 1,455,955 -

Current liabilities Fair value through profit or loss 1,455,955 - 1,455,955 -

Other financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss are recognised at fair value, which is therefore equal to their carrying amounts.

The following classes of financial liabilities at fair value through profit or loss are measured to fair value using quoted market prices: FEC's

The amount of change during the period, and cumulatively, in the fair value of the financial liability that is attributable to changes in the credit risk determined either: As the amount of change in its fair value that is not attributable to changes in market condition that give rise to market risk; or Using an alternative method the entity believes more faithfully represents the amount of change in its fair value that is attributable to changes in the credit risk of the liability.

31

72 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons

South African Rugby Union Voluntary Association of persons Consolidated Financial Statements for the year ended 31 December 2013

Notes to the Consolidated Financial Statements Group Union 2013 2012 2013 2012 RRRR

13. Other financial liabilities (continued)

The differences between the financial liability’s carrying amount and the amount the entity would be contractually required to pay at maturity to the holder of the obligation.

Fair value hierarchy of financial liabilities at fair value through profit or loss

For financial liabilities recognised at fair value, disclosure is required of a fair value hierarchy which reflects the significance of the inputs used to make the measurements.

Level 1 represents those assets which are measured using unadjusted quoted prices for identical liabilities.

Level 2 applies inputs other than quoted prices that are observable for the liabilities either directly(as prices) or indirectly (derived from prices).

Level 3 applies inputs which are not based on observable market data.

Level 1 FEC's 1,455,955 - 1,455,955 -

Transfers into level 1 FEC's 1,455,955 - 1,455,955 -

14. Trade and other payables

Trade payables 27,686,022 28,593,836 27,679,046 28,593,836 VAT 9,339,474 1,999,876 9,650,128 2,173,027 Amounts payable to provincial Unions 14,015,304 6,031,703 14,015,304 6,031,703 Amounts payable to related parties 1,406,519 95,968 - - IRB Sevens PE - JV loan account 11,299,970 - 11,299,970 - Accrued expenses 38,517,562 32,430,100 38,208,518 32,061,587 Other payables 6,189,003 1,819,218 6,228,758 1,819,218 108,453,854 70,970,701 107,081,724 70,679,371

15. Revenue

Broadcasting rights 340,864,209 307,140,378 340,864,209 307,140,378 Sponsorships 339,243,194 272,315,371 339,204,999 272,315,371 Grants from IRB Trust 22,711,766 23,742,133 22,711,766 23,742,133 Gate revenue - Junior World Cup - 1,840,436 - 1,840,436 Home Tests 52,230,000 68,655,340 52,230,000 68,655,340 Merchandising royalties 11,713,546 18,747,977 11,713,546 18,747,977 Government grants 2,049,757 553,870 2,049,757 553,870 Lottery grants 20,215,223 241,499 20,215,223 241,499 Springbok supporters membership fees 5,762,541 6,274,098 - - 794,790,236 699,511,102 788,989,500 693,237,004

32

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 73 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons

South African Rugby Union NOTESVoluntary TO Association THE ofCONSOLIDATED persons FINANCIAL STATEMENTS forConsolidated the year ended Financial 31 Statements December for the2013 year ended 31 December 2013

Notes to the Consolidated Financial Statements Group Union 2013 2012 2013 2012 RRRR

16. Other income

Share profits - IRB Sevens 4,000,000 6,644,513 4,000,000 6,644,513 Other income 356,381 1,264,701 1,630,449 2,284,701 Profit on sale of equipment 47,821 290,039 47,821 290,039 4,404,202 8,199,253 5,678,270 9,219,253

17. Operating profit/(loss)

Operating profit/(loss) for the year is stated after accounting for the following:

Auditors remuneration 1,113,000 1,152,736 1,113,000 1,152,736 Auditors remuneration - other services 538,271 216,050 538,271 216,050 Legal fees 613,675 2,389,444 613,675 2,389,444 Internal audit fees 1,052,324 469,750 1,052,324 469,750 Consulting fees 726,450 674,189 726,450 674,189 4,043,720 4,902,169 4,043,720 4,902,169

Operating lease charges Premises Contractual amounts 5,790,026 6,218,459 5,790,026 6,218,459 Equipment Contractual amounts 1,015,182 1,255,207 1,015,182 1,255,207 6,805,208 7,473,666 6,805,208 7,473,666

Profit on sale of equipment (47,821) (290,039) (47,821) (290,039) Depreciation and amortisation 2,774,121 2,215,513 2,769,354 2,203,506 Loss on foreign exchange 1,347,598 473,549 1,347,598 473,549 Staff costs 68,779,939 60,786,701 67,165,259 59,629,002

Staff costs consist of: Salaries etc. 60,121,180 52,932,394 58,506,500 51,774,695 Contributions 8,377,790 7,636,394 8,377,790 7,636,394 Leave pay 280,969 217,913 280,969 217,913

Operating expenses Broadcasting rights and other allocations 170,212,582 151,289,798 170,212,582 151,289,798 to provinces Commercial and marketing 229,664,733 236,669,234 227,886,371 231,593,559 Corporate affairs 13,042,248 12,279,956 13,042,248 12,279,956 Development 94,691,639 68,478,559 92,122,019 68,478,559 Governance 10,714,202 10,712,136 10,714,202 10,712,136 High performance 194,084,503 149,269,660 194,012,502 149,269,660 Human resources 6,330,441 5,066,212 6,279,574 5,066,212 Office of the CEO 9,089,586 8,844,510 9,089,586 8,844,510 Operations and finance 32,010,954 31,751,551 32,006,192 31,751,551 Referees 34,156,191 34,199,219 34,195,946 34,199,219 793,997,079 708,560,835 789,561,222 703,485,160

33

74 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons

South African Rugby Union Voluntary Association of persons Consolidated Financial Statements for the year ended 31 December 2013

Notes to the Consolidated Financial Statements Group Union 2013 2012 2013 2012 RRRR

18. Investment revenue

Finance income Bank 862,268 5,352,295 862,268 5,319,965 Loans to provincial Unions 1,326,874 1,140,608 1,280,505 1,140,608 2,189,142 6,492,903 2,142,773 6,460,573

19. Interest paid

Bank 1,640,385 74,813 1,640,385 74,813

20. Income tax expense

Major components of the income tax (income) expense

Current Local income tax - current period 86,618 715,889 - 713,994 Local income tax - recognised in current (662,826) (3,710,031) (714,984) (3,661,005) tax for prior periods (576,208) (2,994,142) (714,984) (2,947,011)

Deferred Originating and reversing temporary 3,526,278 2,307,223 3,551,208 2,183,127 differences Arising from prior period adjustments (8,945,386) 4,512,008 (8,910,287) 4,521,637 (5,419,108) 6,819,231 (5,359,079) 6,704,764 (5,995,316) 3,825,089 (6,074,063) 3,757,753

Reconciliation of the income tax expense

Reconciliation between accounting profit and income tax expense.

Accounting profit 5,141,251 6,172,474 5,608,936 5,356,857

Tax at the applicable tax rate of 28% 1,439,550 1,728,293 1,570,502 1,499,920 (2012: 28%)

Tax effect of adjustments on taxable income Donations not deductable 1,957,441 554,216 1,957,441 554,216 Legal fees - 7,981 - 7,981 Prior year under/(over) provision for (662,826) (3,719,660) (714,984) (3,661,005) current tax Prior year under/(over) provision for (8,945,386) 4,521,637 (8,910,289) 4,521,637 deferred tax Other 46,543 901,984 23,267 835,004 Tax on income from equity accounted 169,362 (169,362) - - investments (5,995,316) 3,825,089 (6,074,063) 3,757,753

34

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 75 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons

South African Rugby Union NOTESVoluntary TO Association THE ofCONSOLIDATED persons FINANCIAL STATEMENTS forConsolidated the year ended Financial 31 Statements December for the 2013 year ended 31 December 2013 Notes to the Consolidated Financial Statements Group Union 2013 2012 2013 2012 RRRR

21. Cash used in operations

Profit before taxation 5,141,251 6,172,474 5,608,936 5,356,857 Adjustments for: Depreciation and amortisation 2,774,121 2,215,513 2,769,354 2,203,506 Profit on sale of assets (47,821) (290,039) (47,821) (290,039) Income from equity accounted 604,865 (604,864) - - investments Interest received (2,189,142) (6,492,903) (2,142,773) (6,460,573) Interest paid 1,640,385 74,813 1,640,385 74,813 Foreign exchange adjustment on FEC's 1,455,955 - 1,455,955 - Changes in working capital: Inventories 2,673,003 442,741 2,669,046 441,451 Trade and other receivables (62,746,274) (46,932,543) (62,670,662) (46,674,471) Trade and other payables 37,483,152 19,569,358 36,402,353 20,466,796 Deferred income (24,385,222) 8,186,059 (24,602,732) 8,186,059 (37,595,727) (17,659,391) (38,917,959) (16,695,601)

22. Tax received (paid)

Balance at beginning of the year 6,143,854 (2,942,276) 6,110,509 (2,950,414) Current tax for the year recognised in 576,208 2,994,142 714,984 2,947,011 profit or loss Balance at end of the year 31,935 (6,143,854) - (6,110,509) 6,751,997 (6,091,988) 6,825,493 (6,113,912)

23. Commitments

Operating leases – as lessee (expense)

Minimum lease payments due - within one year 4,967,135 6,084,406 4,967,135 6,084,406 - in second to fifth year inclusive 20,274,511 25,711,821 20,274,511 25,711,821 - later than five years 21,451,263 38,063,382 21,451,263 38,063,382 46,692,909 69,859,609 46,692,909 69,859,609

24. Retirement benefits

The Union continues to contribute to The Rugby Pension Fund which operates defined benefit and defined contribution pension schemes covering all eligible employees of the Union. The assets in the schemes are held in administered trust funds. The schemes' assets primarily comprise listed shares, property trust units and fixed income securities. South African pension funds are governed by the Pension Funds Act 1956.

The last actuarial valuation of the defined benefit fund was performed on 31 December 2013, using the projected unit method.

35

76 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons

South African Rugby Union Voluntary Association of persons Consolidated Financial Statements for the year ended 31 December 2013

Notes to the Consolidated Financial Statements Group Union 2013 2012 2013 2012 RRRR

24. Retirement benefits (continued)

Principal actuarial assumptions at the reporting date: Discount rate 10.30% 9.25% Inflation rate 7.40% 7.00% Salary increase rate 8.40% 8.00% Expected return on scheme's assets 10.30% 9.25% Pension increase allowance 5.92% 5.60%

Mortality pre-retirement: SA85-90 (Light) table.

Mortalilty: post-retirement: PA(90) ultimate table rated down 2 years plus 1% improvement p.a.

The expected return has been set equal to the discount rate as required under the revised IAS19 (AC116).

The movement in the defined benefit obligation over the year is as follows: Beginning of the year 637,000 1,322,000 637,000 1,322,000 Current service cost 32,000 56,000 32,000 56,000 Member contributions 10,000 13,000 10,000 13,000 Interest cost 61,000 115,000 61,000 115,000 Expenses (2,000) - (2,000) - Risk premiums (4,000) (3,000) (4,000) (3,000) Actuarial (gain)/loss (189,000) (408,000) (189,000) (408,000) Benefits paid - (458,000) - (458,000) At the end of the year 545,000 637,000 545,000 637,000

The movement in the fair value of the scheme's assets over the year is as follows: Beginning of the year 754,000 (147,000) 754,000 (147,000) Expected return on the scheme's assets 71,000 127,000 71,000 127,000 Actuarial gain/(loss) (79,000) (302,000) (79,000) (302,000) Expenses (2,000) - (2,000) - Member contributions 10,000 13,000 10,000 13,000 Employer contributions 20,000 25,000 20,000 25,000 Risk premiums (4,000) (3,000) (4,000) (3,000) Benefits paid - (458,000) - (458,000) At the end of the year 770,000 (745,000) 770,000 (745,000)

Estimated contributions for 2014 is as follows: Member contributions 11,000 10,000 11,000 10,000 Employer contributions 21,000 21,000 21,000 21,000 Risk premiums (4,000) - (4,000) - Expenses (2,000) - (2,000) - 26,000 31,000 26,000 31,000

36

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 77 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons

South African Rugby Union NOTESVoluntary TO Association THE ofCONSOLIDATED persons FINANCIAL STATEMENTS forConsolidated the year ended Financial 31 Statements December for the 2013 year ended 31 December 2013

Notes to the Consolidated Financial Statements Group Union 2013 2012 2013 2012 RRRR

24. Retirement benefits (continued)

The assets of The Rugby Pension Fund were invested as follows: Cash 13.68% 13.28% 13.68% 13.28% Equity 34.81% 33.50% 34.81% 33.50% Bonds 21.69% 16.91% 21.69% 16.91% Property 5.58% 4.68% 5.58% 4.68% International 23.3% 24.59% 23.3% 24.59% Other 0.94% 7.04% 0.94% 7.04% 100.00% 100.00% 100.00% 100.00%

The amounts recognised in the statement of comprehensive income are as follows: Current service cost 32,000 56,000 32,000 56,000 Interest cost - 115,000 - 115,000 Net interest on net defined benefit (10,000) - (10,000) - obligation Expected return on the scheme's assets - (127,000) - (127,000) Unrecognised due to limit - - - - Net actuarial (gain)/loss - 11,000 - 11,000 Paragraph 58A (gain)/loss - - - - 22,000 55,000 22,000 55,000

A surplus cannot, in terms of the surplus apportionment exercise which was performed, be apportioned to the Employer Surplus account. The employer is not entitled to receive an economic benefit in the form of refunds from the fund or reductions in future contributions to the fund in terms of paragraph 59 of IAS 19 "Employee benefits".

Funded status Defined benefit obligation (545,000) (637,000) (545,000) (637,000) Assets at fair value 770,000 (458,000) 770,000 (458,000) Unrecognised net (gain)/loss (188,000) 207,000 (188,000) 207,000 Asset/(liability) recognised on the 37,000 (888,000) 37,000 (888,000) statement of financial position

25. Related parties

` Relationships Subsidiaries Refer to note 6 Associates Refer to note 7 Executive Council Refer to Executive Council's Report

Related party balances

Amounts receivable from provincial Unions Included in trade and other receivables 5,849,340 10,014,162 5,849,340 10,014,162

37

78 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons

South African Rugby Union Voluntary Association of persons Consolidated Financial Statements for the year ended 31 December 2013

Notes to the Consolidated Financial Statements Group Union 2013 2012 2013 2012 RRRR

25. Related parties (continued)

Amounts payable to provincial Unions Included in trade and other payables 14,015,304 6,031,703 14,015,304 6,031,703

Amount recoverable from HSBC IRB Sevens Series Joint Venture Included in trade and other receivables - 7,943,604 - 7,943,604

Loans receivable from provincial Unions Included in trade and other receivables 35,626,247 24,609,808 35,627,247 24,609,808

Loans receivable from The South African Rugby Heritage Trust Included in trade and other receivables 36,901,751 - 36,901,751 -

Loans payable to Treble Entertainment (Pty) Ltd Included in trade and other payables 1,406,519 95,968 - -

Related party transactions

Transactions with subsidiary Royalties accrued - - - (1,020,000)

Transactions with associates Distribution of profits (604,865) 604,864 - -

Distribution to Unions Distribution of broadcasting rights to 160,212,582 130,623,798 160,212,582 130,623,798 provinces Distribution of home test profits 10,000,000 10,000,000 10,000,000 10,000,000 170,212,582 140,623,798 170,212,582 140,623,798

Receipts from Unions Home Test hosting fees 39,300,000 27,100,000 39,300,000 27,100,000

38

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 79 SOUTH AFRICAN RUGBY UNION Voluntary Association of persons

South African Rugby Union NOTESVoluntary AssociationTO THE ofCONSOLIDATED persons FINANCIAL STATEMENTS forConsolidated the year Financialended 31 Statements December for the 2013 year ended 31 December 2013 Notes to the Consolidated Financial Statements Group Union 2013 2012 2013 2012 RRRR

26. Executive Council Members Remuneration

Non executive Fees 4,200,168 3,935,171 4,200,168 3,935,171 Allowances 178,500 295,197 178,500 295,197 Retirement Annuity contributions 120,788 115,956 120,788 115,956 4,499,456 4,346,324 4,499,456 4,346,324

Executive Salaries 3,961,408 3,378,834 3,961,408 3,378,834 Bonuses 1,923,295 1,591,098 1,923,295 1,591,098 Medical Aid contributions 77,904 40,884 77,904 40,884 Pension Fund contributions 587,722 498,772 587,722 498,772 6,550,329 5,509,588 6,550,329 5,509,588

27. Going concern

The consolidated financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.

28. Events after the reporting period

The Executive Council is not aware of any matter or circumstance arising since the end of the financial year that will have a significant influence on the financial statements.

39

80 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013

The Springboks produced one of their best performances of 2013 at the Nelson Mandela Sport and Culture Day in Soweto, beating Argentina 73-13 in the Castle Lager Rugby Champion- ship, outscoring the visitors nine tries to one.

2013 ANNUAL REPORT HIGH PERFORMANCE

84 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 HIGH PERFORMANCE 2013 SUMMARY 2013 WAS A SIGNIFICANT YEAR FOR THE HIGH PERFORMANCE DEPARTMENT FOR A NUMBER OF REASONS: • Record breaking year for the Springboks • Roll-out of Footprint and Stratus Analytical programmes • Appointment of new Sevens coach • Women’s Rugby qualifying for the Wom- en’s Rugby World Cup in 2014 • Roll-out of BokSmart 3 programme • Statistical analysis and national involve- ment of High Performance’s Mobi-unit

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 85 SPRINGBOKS

hilst 2012 was a transitional year for the Spring- boks with a new coach at the helm, 2013 saw the Springboks winning 10 of their 12 tests and com- ing agonisingly close to take the Castle Lager Rug- Wby Championship, going down to New Zealand in an all-time epic at Ellispark in the Championship decider.

For the Springboks’ 2013 campaign, • on 24 August 2013 Heyneke Meyer called up 44 players with against Argentina 38 making a test appearance whilst giv- • on 29 September ing debuts to seven players namely Trevor 2013 against Australia Bismarck du Ples- Nyakane, Willie le Roux, Siyamthanda Kolisi, • Mornè Steyn on 29 September 2013 sis was part of a Lourens Adriaanse, Piet van Zyl, Jan Serfon- against Australia handful of Spring- tein and Pieter-Steph du Toit. • on 5 October 2013 boks that earned Five players also achieved the milestone against New Zealand their 50th test of having represented the Springboks in 50 • Jon-Paul Pietersen on 17 November during 2013 tests during the 2013 season: 2013 against Scotland With a season winning percentage of 83.33%, the Springboks are ranked second by the IRB with the South Africans have made tremendous gains to close the gap on and dominance of the top-ranked New Zealand in World Rugby. The Castle Lager Incoming Series in June afforded Meyer with an excellent opportuni- ty to give some youngsters and fringe players a chance to play at international level, as well as a perfect opportunity to build towards the Castle Lager Rugby Championship campaign. As expected, the Springboks took honours against Italy, Scotland and Samoa and were well set to make their mark in the Rugby Championships. Initial home and away vic- tories against Argentina, including a nine-try romp at FNB Stadium, were the perfect setup for the contest against Australia in Brisbane. This venue proved unkind to South Africa on previous occasions, but the Springboks made history at Suncorp Stadium with an impressive bonus point victory. It set up a mouth-watering contest against New Zealand at that failed to live up to expectation following the sending off of Bismarck du Plessis in a decision that was later wiped off his record by the IRB. A good win at Newlands against Australia set up the Championship decider against New Zealand at Ellis Park, but the Boks just

86 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 HIGH PERFORMANCE

came up short. also kept Scotland scoreless for the first time The Springbok embarked on their North- since 1952 and beat France in France for the ern Hemisphere campaign, looking for a first time in 16 years. second undefeated tour and Meyer returned With the foundation now firmly in place with the Springboks doing just that. The tour for Meyer and his team, the 2014 season will to the Northern Hemisphere saw the team provide the Springboks with the opportunity not only preventing Wales from scoring a to unseat the All Blacks as the premier team try for only the second time in their 24-15 in the world as well as building towards the win over the Six Nations Champions, but all-important Rugby World Cup in 2015.

2013 SPRINGBOK TEST MATCHES DATE VENUE OPPONENT RESULT SCORE SCORERS June 08 Growthpoint KINGS PARK, Italy Won 44-10 T: Strauss, Engelbrecht, Habana, De Villiers, Basson. C: Steyn (4), Lambie. P: Steyn (3). June 15 Stadium, Nelspruit Scotland Won 30-17 T: Penalty try, Engelbrecht, Serfontein. C: Steyn (2), Lambie. P: Steyn (2), Lambie. June 22 Loftus Versfeld, Samoa Won 56-23 T: Habana (2), Louw (2), Engelbrecht, Basson, Steyn, Nyakane. C: Steyn (3), Lambie (2). P: Steyn (2) Aug 17 FNB Stadium, Soweto Argentina Won 73-13 T: Penalty try, Engelbrecht, Strauss, Alberts, De Villiers, Du Preez, Habana, Vermeulen, B du Plessis. C: Steyn (8). P: Steyn (4). Aug 24 Estadio Malvinas Argentinas, Mendoza Argentina Won 22-17 T: Basson. C: Steyn. P: Steyn (5). Sept 07 Suncorp Stadium, Brisbane Australia Won 38-12 T: Oosthuizen, De Villiers, Kirchner, Le Roux. C: Steyn (3). P: Steyn (4). Sept 14 Eden Park, New Zealand Lost 15-29 T: B du Plessis, Lambie. C: Steyn. P: Steyn. Sept 28 DHL Newlands, Cape Town Australia Won 28-08 T: Strauss, Kirchner, Le Roux. C: Steyn (2). P: Steyn (3). Oct 05 Ellis Park, New Zealand Lost 27-38 T: Habana (2), Le Roux, De Villiers. C: Steyn (2). P: Steyn. Nov 09 , Wales Won 24-15 T: De Villiers, B du Plessis, Du Preez. C: Steyn (2), Lambie. P: Steyn Nov 17 Murrayfield, Scotland Won 28-00 T: Alberts, Le Roux, Pietersen, Oosthuizen. C: Lambie (4). Nov 23 , France Won 19-10 T: Pietersen C: Steyn. P: Steyn(3), Lambie.

The Springboks made history at Suncorp Stadium with an impressive bonus point victory setting up a mouth-water- ing contest against New Zealand at Eden Park only for the referee to hold sway

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 87 Bismarck du Ples- sis was part of a handful of Spring- boks that earned their 50th test cap during 2013

88 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 HIGH PERFORMANCE

SEVENS The core focus of the Sevens department the Springbok Sevens contracted group, but was the success of Springbok Sevens team Ryno Benjamin (Toyota FS ), Sampie and the development of Sevens coaches Mastriet (Vodacom Blue Bulls) and Sibusiso within South Africa. The Springbok Sevens Sithole (Sharks) were also selected. team participated in the HSBC Sevens World They started magnificently, finishing the Series and the 2013 Rugby World Cup Sev- pool stages of the competition as top of their ens tournament. The team had a very in- pool, winning all three matches and not con- consistent year, winning three World Series ceding a point. In the Cup Quarter-final of tournaments but also producing the lowest the competition, the Springbok Sevens team placed tournament finish in history. Over- drew Fiji and subsequently lost 10-12. all the team finished second on the HSBC The first IRB Sevens Level 2 Coach work- Sevens World Series log, but was knocked shop and IRB Educator course was held out in the quarter-finals of the Rugby World in , with 15 Sevens coaches Cup Sevens tournament. accredited as IRB educators in April 2013. The Springbok Sevens team won three The courses were held at the Stellenbosch tournaments in the 2012/2013 HSBC World Academy of Sport, facilitated by Hilton Sevens Series, with back-to-back victories Adonis and the SARU coach development in Tokyo and Glasgow. The success of team team. The course allowed aspiring Sevens was based primarily on the emergence of coaches to learn more about the game, and exciting young players that broke into the more importantly, become educators, thus squad through their experience gained in the spreading sound coaching principles to the Springbok Sevens Academy structures. Ches- players and coaches that they will interact lin Kolbe, and Justin Geduld with in the future. provided X-factor to compliment the experi- The key driver for elevating the profile for ence of the established core of senior players. Sevens is the success of the National team A significant achievement in 2013 was and player progression from Sevens to suc- becoming the first player in the history of Sevens rugby to play 50 con- secutive IRB tournaments. The Springbok Sevens coaching staff also The Springbok Sevens coaching staff also used the services of the SARU Mobi-unit used the services of the SARU Mobi-unit with Pieter de Villiers providing valuable scrum- with Pieter de Villiers providing valuable maging input and assisting with the kickers. scrummaging input and Louis Koen assist- The inconsistency in performance can be ing with the kickers. attributed to the injuries sustained through the year. In the 2012/2013 season, a total of 23 players were used for the nine tour- cessful Vodacom Super Rugby, Absa Currie naments in the HSBC Sevens World Series, Cup and Under-20 campaigns. In 2013, the the most ever in a season (and six more 6 team won three HSBC tournaments and fin- more used in the Series winning 2008/2009 ished second overall. Cheslin Kolbe, Seabelo season). The lack of consistency in selections Senatla and Justin Geduld represented South and player availability contributed to incon- Africa at Under-20 level, with Kolbe repre- lifts the Las Vegas sistent performances. senting DHL Western Province in the 2013 Sevens trophy in The 2013 Absa Currie Cup final. January 2014, the summarized the season for the Springbok In August 2013, Paul Treu and SARU second title won Sevens team. In a campaign involving the parted ways through mutual consent. Treu by the Springbok co-operation of all 6 Super Rugby franchises, subsequently became the head coach of the Sevens team in the one player from each Super Rugby team (not Kenyan Sevens team, recruiting the Spring- current 2013/14 including the 32 players in the Springbok bok Sevens assistant coach, Vuyo Zangqa to HSBC Sevens group), were invited to trial for the Spring- join him. World Series. The bok Sevens World Cup team. The final team Neil Powell, the Academy head coach, team also won in selected was made up predominantly of was appointed as the Springbok Sevens head Las Vegas in 2013.

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 89 coach and Renfred Dazel, the Springbok Sev- The loss of coaches confirmed the need ens Academy Assistant coach, was appointed for the coach development pathway to be Lorinda Brown as the Women’s Sevens head coach. greater than ever. The biggest challenge in and Shona-Leah Regarding players, the Springbok Sevens the future is to develop a coach and player Weston in action team management continues to build a pathway that will ensure intellectual prop- at the Amsterdam world-class contracted Sevens squad that is erty is not lost when coaches are replaced. Sevens Invita- successful in the HSBC Sevens World Series, By using SARU’s Footprint system next tional Tournament while building to qualifica- year, we hope to up-skill a number of in the Netherlands tion in 2015 and the Olympic Games compe- coaches using the distance learning capabili- in May. tition in 2016. ties, contained within the system.

90 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 HIGH PERFORMANCE

WOMEN’S RUGBY 2013 proved to be a very busy year for ending up being great spectacles with a mas- Women’s Rugby with many highs, some lows, sive amount of talent on display. The tourna- but most importantly, many lessons learned ments painted a bright future for the game which we can now apply in 2014 and beyond. of Women’s Rugby if we are able to invest All three Women’s National teams partici- and nurture the talent we have available. pated in international tournaments in 2013. The Sevens team competed in the IRB Sevens INTERPROVINCIAL LEAGUE (IPL) World Cup in Moscow and the Women Sen- Border was crowned the IPL champions after ior XV and the Under-20’s competed in their defeating the defending champions, Western respective Nations Cups. Province, in the final hosted in East London. Griqualand West won the B-Section of the SEVENS WORLD CUP – MOSCOW IPL with an impressive win over Limpopo in A disappointing overall performance made us the final. realize what is needed (and lacking) for our teams to compete on the international stage. PARTNERSHIP WITH THE EASTERN CAPE Every single nation that competed there has DEPARTMENT OF SPORT, RECREATION, fulltime professional players and coaching staff, ARTS AND CULTURE and the divide between South Africa, who did SARU has formed a partnership with the not any, and them was glaringly obvious. Department for the preparation of the The decision was taken to change our Women’s Sevens team for the Olympics in policies and to employ fulltime professional 2016. The partnership includes a residen- athletes, a fulltime dedicated coach, bioki- tial programme that has been established neticist and physiotherapist from 2014 until where 18 women players are housed in Port 2016. It is a huge leap forward for Women’s Elizabeth and trained and conditioned at the Rugby and one we are positive will pay divi- Nelson Mandela Metropolitan University and dends as soon as the 2014 season kicks off. their impressive and state of the art High Performance Center with access to world NATIONS CUP TOURNAMENTS class expertise and equipment. The senior Women’s XV side competed in the IRB Nations Cup hosted in the USA and the THE FUTURE OF WOMEN’S RUGBY Under-20’s in the Nations Cup held in England. In a sport dominated by men we will never The Under-20 team acquitted themselves enjoy the same sponsorship and financial well compared to their first tournament in benefits of the men’s national teams and 2011. Some narrow losses were followed have to find ways that will give us the neces- up by an impressive victory over Women’s sary exposure in the public domain. Rugby powerhouse, England. We believe our programmes are far more The Springbok Women’s team qualified advanced than any other women’s codes for the IRB Women’s Rugby World Cup (to be in South Africa and with the structures and hosted in France in 2014) with an impressive programmes we have established over the 63-3 win over Uganda in East London on the last year will see a marked improvement in 7th of September 2013. our overall results. One of our key objectives will be to raise AGE-GROUP TOURNAMENTS the profile of women’s rugby in South Africa Both the Under-16 and Under-18 girls’ through more positive results and more inter- tournaments were a success with the games national competitions we are planning to host.

We believe our programmes are far more advanced than any other women’s codes in South Africa and with the struc- tures and programmes we have established over the last year will see a marked improvement in our overall results.

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 91 MEDICAL AND BOKSMART In 2013, under the strategic The implementation of the in the British Medical Journal objective of Rugby Safety and School Age-banding regula- and the South African Journal of Player Welfare, the department tions was a serious challenge, Sports Medicine and wrote a case rebranded, edited, finalized, mass as many schools were struggling study on BokSmart for an inter- produced and rolled out the 3rd to come to terms with the new national book on Rugby Science. Edition of BokSmart, including regulations, but with this teething This enhances the credibility relevant educational DVD’s, hard period now at an end, it is hoped and international footprint of copy manuals, and concussion that in 2014, this will be properly the programme, and established guides for prevention of head, applied across all 14 Provinces. BokSmart as one of the world neck and spine rugby injuries. Since implementation of the Ama- leaders in sporting injury preven- Two-day workshops were teur Scrum Laws, there has only tion initiatives. provided at the 14 Provincial being one permanent catastrophic A research and communica- Rugby Unions, where nominated scrum injury outcome, which was tions portal called BokSurveys. trainers were educated on pre- in the very early part of the year com was launched where we can senting the programme, and were from a scrum collapse. communicate directly with all assessed on their presentation No ‘impact on engagement’ of our stakeholder coaches and competency. Those who passed injuries have been recorded since referees. the assessment were accredited the new Laws have been applied; The department has also been as BokSmart Trainers. BokSmart this shows a huge improvement working hard on getting all 14 Pro- vincial Unions on board in perform- ing regular random safety audits No ‘impact on engagement’ injuries have been Serious catastrophic head, neck recorded since the new Laws have been applied; and spine rugby related injuries are down on average by three a this shows a huge improvement in the scrum inju- year since BokSmart came about in 2008; from an average of 15 ry situation in SA, as this was originally the main per year from 2001-2007 to an contributor to permanent scrum-related spinal average of 12 a year from 2008- 2013 cord injuries before the Laws were in place. Spinal cord injuries have shown the most change from an average 3 will continue to roll out around in the scrum injury situation in of 14 in 2001-2007 to an average the country until late in 2015. SA, as this was originally the main of 10 since 2008. The new course was consider- contributor to permanent scrum- The Department has become ably shortened and is available related spinal cord injuries before an influential part of rugby’s busi- in English, Afrikaans and Xhosa. the Laws were in place. ness, especially when it comes to This has the potential to increase The department provided a player safety, health and well- the buy-in and implementation at proudly South African session on being. Not only has it influenced grass-root level rugby where it is BokSmart at the world-renowned how the game is played, it has most needed. American College of Sport Medi- also influenced local rugby regula- Other new initiatives include cine Congress in Indianapolis, tions. It has furthermore contrib- SARU’s new School Age-banding USA, and had a dedicated Rugby uted substantially both nation- Regulations and the modified Medicine track at the SASMA ally and internationally to injury South African Rugby Amateur congress in SA. prevention in rugby and to sports Scrum Laws. We published scientific papers medicine globally.

92 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 HIGH PERFORMANCE

TECHNICAL In 2013 the Technical Support Department mum term for the subscription of three years focused on developing a proudly South and a termination date of 30 April 2016. The African analysis system called Stratus, department also managed to compile various establishing a coding centre within SARU, reports during the year and managed to equip acquiring an athlete management system the national teams with the technical require- (whereby especially the medical department ment needed to perform. can manage their players on a daily basis), The biggest challenge for Stratus this year develop and maintain systems which enable was getting the event and match coding mod- the collection, summary and distribution ule right. It was designed from scratch and of accurate statistical, individual, team and had to find the best approach to ensure that video information (notational analysis). All events are captured, stored and reported cor- this formed part of the vision and mission rectly. The match coding module also proved of the department to be at the forefront of crucial to ensure that games can be coded Performance Analysis and providing a centre in the quickest possible time. Funding will of analysis to promote, develop and manage always be a challenge but an increase in the analysis for all National Teams. development team from two to four is crucial Significant for the department was the to ensure the success of the project and have signing of the contract between SARU and SARU’s product compete in the market space. Mobii on the 14th of May 2013, with Mobii The design philosophy (figure 1) of Stratus becoming the software developer for the is to create a cloud-based system that can South African Rugby Union in term of the store and manage data centrally, connect Stratus development until 31 December 2018. users with the ability to share and access On the 6th of June 2013 a contract was signed content, expand with new functionality by between SARU and Edge10 (athlete manage- feeding off same data set and accessible to ment system). Both parties agreed to a mini- grassroots level organisations.

Dr Craig Roberts is now able to manage Springbok players on a daily basis due to the Technical Support Department deve- loping an analysis system called Stratus.

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 93 OPPOSITE PAGE: Siya Kolisi on the Figure 1 - Stratus detailed score analysis (during the Vodacom charge against The following development path was fol- Super Rugby, Internationals and Absa Currie the New Zealand lowed in the design of Stratus: Cup), referee profiling (during the Vodacom Super Rugby fran- • Market Evaluation Super Rugby and Absa Currie), lineout and chise, the . • Event codes and match coding scrum attack reports in preparation for the development Springboks, a KPI report of the South African • Reports and playlists players in all major competitions and a set • Video capture and streaming piece green report during the Castle Lager • Sharing Rugby Championship to name only a few. • Portal The Mobi Unit also compiled an in-depth The department set a goal of signing up analysis (using the expertise of Chean Roux, a maximum of 12 clients for the 2014 rugby Louis Koen and Pieter de Villiers) of the New season and although always challenged with Zealand teams (and and Reds) dur- available resources to produce a working ing the Vodacom Super Rugby competition. product, we successfully managed to sign up This was made available to the South African a confirmed nine clients (including two Super franchises to assist them with their prepara- Rugby franchises) with a further thirteen still tion. This was definitely a first for SARU, but negotiating terms. This ensures that Stratus, we need to streamline the whole process which went live in January 2014, will become going forward to secure its success. a self-sustainable product for SARU. With minimal marketing of Stratus and the High Performance has identified the coding centre to the provincial teams, franchis- medical department as a critical component es, varsity cup teams, etc. the system exceeded of the division which prompted the acquisi- expectations in the manner it was received. tion of Edge 10. Currently all the players of The department made significant strides the various national teams are loaded in in 2013 and will not only expand with the the system in order for the medical staff to opening of the coding centre but also con-

Coaches

SARU Coding Centre Organisation 1 Analysts

OBJECTIVE

What? Secure, Accessible Players When? Where? Match Data Organisation 2

Video Sync Organisation 3

Video Organisation 4

Content Sharing

capture and monitor the relevant data. This tinue with the development of Stratus in project is currently in its infancy stage and ensuring that it becomes the analysis system will grow as time goes on. of choice. Our focus will also be to look at During the year the department - through the current reports and refine them for next the Mobi-unit - compiled various reports year with a bigger emphasis on trend analy- and ensured that the national teams are sis. The role of the department has definitely equipped with the necessary tools (within grown over the last two years and we have the budget constraints) to ensure that they become an integral part in ensuring that perform to the best of their capabilities. the various national teams perform at the Some of the reports compiled included a optimal best.

94 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 HIGH PERFORMANCE

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 95 Bismarck du Ples- sis was part of a handful of Spring- boks that earned their 50th test cap during 2013

96 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 HIGH PERFORMANCE

FOOTPRINT

In 2013 the High Performance department rolled out a player performance Springbok Duane assessment program called Footprint. Footprint allows all National Teams, Vermeulen dem- including teams in national competitions like the Coca-Cola Craven Week, to onstrates a break- assess their respective players in the different competitions they took part in down drill during during the rugby season. the SARU coaching Assessments were completed for all National teams including the Presi- symposium at dent’s XV, Under-18 and Under-20, Sevens, Women and the Senior Springbok Mthatha Rotary team. In addition to the national teams and competitions that were as- Sport Stadium. sessed, SARU’s High Performance department also registered the majority of Craven Week teams including the Under 13’s, Under-16’s (Grant Khomo Week), Under-18 Academy teams and Under-18 Craven Week teams. The registration and assessments of the age-group teams and players are sig- nificant because for the first time SARU has started to compile a database of players and coaches from all age-groups that participates in our National Elite competitions. This will help track the progress and development of indi- viduals in an aim to create a National Pathway for elite players and coaches. Apart from the National teams, SARU and the High Performance depart- ment, through our partnership with the Department of Sport, Recreation, Arts and Culture of the Eastern Cape (DSRAC), also hosted three clinics in Mthatha, Queenstown and King Williams Town in 2013. At each of these clinics the High Performance department presented Elite coaching method- ologies to around 50 to 60 amateur coaches. It included a visit and practical on-field session by the Springbok coaching team and selected Springbok players. Each of these individuals also registered on SARU’s Footprint programme where we will assist in their development as coaches through Footprint’s Distance Coaching program. The Distance Coaching program al- lows the High Performance department to upload material (files, videos and presentations) as well as the ability to remotely test and assess each coach’s competency and development following the completion of each course module. The High Performance department has already registered over 3500 users on the programme since June 2013 and aim to increase to 15 000 in 2014. Footprint V.2 launched in January 2014 and we will use the competition to increase its profile amongst all 14 unions and assist in the registration, development and tracking of previously disadvantaged players. Footprint V.2 will also be used actively in 2014 by at least two Super Rugby franchises during the Super Rugby competition. Footprint will play a crucial role in 2014 within our National setup where it will be implemented specifically at Under-20, Sevens and Women’s Rugby as a distance coaching tool to assist in the identification, assessment and devel- opment of elite coaches and players in an aim to create a national pathway. Modules that will be developed and rolled out within the Footprint pro- gramme in 2014 will include;

• Medical and conditioning assessments • Scouting application • Selectors module • Contract Management module

The High Performance department will also increase its Footprint pro- file in 2014 at all National Youth Week competitions where all players and coaches from all teams will be registered for assessments.

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 97 98 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 2013 ANNUAL REPORT DEVELOPMENT

HE 2013 calendar year saw the Development Depart- ment pick the fruits of its labour from the previous year’s efforts, while it also continued to make significant strides in a number of strategic focus areas, including increased grassrootsT participation, enhanced coaching quality, and improved talent identification.

In addition, the Department delivered Clubs both old and new took their first ten- on its goal to stage better amateur tourna- tative steps back into the national televised ments while identifying further room for im- spotlight with a total of 13 matches broadcast provement in 2014. Strong showings by the live on SuperSport, while a six-part weekly national teams under its control continued magazine show, aptly titled Working-Class to be a feather in the cap of those tasked Heroes, confirmed what those with their ears with ensuring that these sides were expertly to the ground had always known: club rugby prepared and primed to perform when it is not quite ready to go the way of the dodo mattered most. just yet. Performances delivered by the SA SCHOOLS The Department’s 2013 strategic focus and JUNIOR SPRINGBOKS teams in 2013 were area of increased participation achieved suc- once again a barometer of the excellent health cess on a number of fronts, most notably in of the sport in this country at schoolboy and its implementation of a national development age-group level – with the likes of the COCA- model in 45 communities nationwide. It also COLA UNDER-18 CRAVEN WEEK successfully improved co-operation with provincial and staged for a 50th time, remaining the envy of national Government as well as the South the rugby-playing world. African Rugby Legends’ Association (SARLA), The revival of club rugby has long been University Sport South Africa Association regarded as the foundation on which the (USSA) and TAG South Africa, amongst others. game is built. It was believed to largely lost With a presence in 48 of the country’s 53 its lustre and relevance in the professional municipal districts and its effects felt in over era. It took a giant step forward in 2013 a thousand schools and at 100 clubs, the with the successful staging of the inaugural community-based model, if nurtured diligent- CELL C COMMUNITY CUP, which replaced ly, will ensure that more South Africans take the historic but ailing National Club up the game and, once hooked, do not walk Championships. away from it.

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 99 Two SARU initia- tives to strengthen grassroots rugby: A Clubwise adminis- trators course (left) and the “Get into Rugby’ programme.

A ground-breaking, NQF Level-5 accredited course in club administration, ClubWise, was also launched to much positive reception and its rollout in the coming years – with 14 courses planned for 2014 – can only assist in the revival of club rugby already being witnessed.

The IRB Get In to Rugby project, an The Department’s 2013 strategic focus online monitoring programme, is aimed at area of enhanced coaching quality contin- increasing participation at school level. This ued to work towards delivery on a number programme was successfully piloted in the of goals, including the alignment of coach- Western Province region and will be rolled ing accreditation processes with SASCOC, out to the rest of the country in 2014. SAQA and CATHSSETA (by June 2014), A ground-breaking, NQF Level-5 accred- and improved regional coaching co-ordina- ited course in club administration, ClubWise, tor structures. was also launched to much positive recep- Over 3,700 coaches received Level 1 and tion and its rollout in the coming years – 2 training while the accreditation process of with 14 courses planned for 2014 – can only the programme’s first 15 Level 3 coaches was assist in the revival of club rugby already completed. Despite the successes, a number being witnessed. of challenges remain, including the quality and sustainability of the provincial coaching workforce. To this end, 2014 will see contin- ued focus to ensure coaching at national and provincial level is enhanced through appropriate and accredited training and education programmes. Another strategic focus area was player development and performance. This area was instituted to bridge the gap between schoolboy and professional rugby through in- itiatives such as the Coca-Cola Youth Weeks; Performance workshops and the Coca-Cola Schools of Excellence Programme. Thirty (30) rugby schools from underprivileged com- munities were supported by this programme during 2013. SARU established four regional academies Players in action during the Coca-Cola Schools of in the Boland, Border, Eastern Province and Excellence Programme at Loftus Versfeld. the South Western Districts provinces.

100 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 DEVELOPMENT

The main purpose of these Academies is to four-year unbeaten record with victories over ensure that players from the programmes England, Wales and France, in an Internation- are prepared and developed for the demands al Under-18 Series which continues to grow of professional rugby. each year, while the SA Students comprehen- The success of these academies included sively beat Namibia in Windhoek. In addition, numerous players being given the opportu- amateur competitions including the Cell C nity to compete in the junior Absa Under-19 Community Cup, Youth Weeks, Amateur Pro- and Under-21 Competitions. The teams from vincial and Sub-Union events, afforded 3,500 Boland and Eastern Province competed in players the opportunity to showcase their The 50th Coca-Cola the finals of the junior Absa Currie Cup com- talent at a representative level. Under-18 Craven petition. Several black players progressed to At senior club level, the inaugural Cell C Week was held compete in the Vodacom Cup, Absa Currie Community Cup produced a fairytale end- at the Old Peter Cup and Vodacom Super Rugby. Two players ing when GAP Management Despatch beat Mokaba Stadium, have graduated to represent the SA Under- Jonsson College Rovers with the final kick Polokwane, which 20s through this system. of the match to lift the historic at saw increased tel- evision viewership figures compared to 2012.

Jan Serfontein made the step up from Junior Spring- bok in 2012 to become a part of Heyneke Meyer’s Springbok team in 2013.

Our 2013 strategic focus area on the improved staging of amateur events saw us hosting a total of 24 local and international matches featuring the Junior Springboks, SA Schools and SA Students teams. The SA-Un- der 20 team, under the guidance of Dawie Theron, won bronze at the IRB Junior World Championship in France, capping off the tournament with a fine victory over New Zealand – the team’s second win in as many years over the old enemy. Off the field, the Junior Springbok brand continues to grow, while in the playing arena , the JWC player of the tournament in 2012, made his Test debut in 2013 after being seconded from the SA U20 training squad by Springbok coach Heyneke Meyer. The SA Schools team maintained their

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 101 Outeniqua Park in George – the culmination Middelburg in Mpumalanga. Junior Springboks of 52 matches played in 23 venues across In summary, it was a year of memorable captain Ruan the country, of which 13 were televised live milestones for the Development Department Steenkamp on the by SuperSport. as a whole. A number of projects remains a charge against And after 158 matches involving 98 teams work in progress. There is much work to New Zealand in the and 2,168 players, the Coca-Cola Youth be done to ensure our national sport one bronze final Weeks for 2013 – the first to be run under day becomes not only the sport of choice of the 2013 IRB the Department’s draft copy of a new hosting for the majority of South Africans, but Junior World blueprint – concluded in Polokwane with crucially, a sport easily accessible to every- Championship. the staging of the 50th Under-18 Craven one, irrespective of where they live or their economic situation. South Africa’s rich rugby heritage, its seemingly endless conveyor belt of school- boy talent, its excellent and ever-evolving competition structures and the dedication of its operational staff, means that the likes of the Junior Springboks will always be contend- ers for the IRB Junior World Championship title, while the Coca-Cola Craven Week and Cell C Community Cup will, in the years to come, continue to raise the bar when it comes to amateur events. But all of the above will remain merely the tip of a fast-melting iceberg if we do not continue to actively attract more men and women of all backgrounds and from every corner of the country to the sport, and con- tinue to educate more coaches and referees, without whom we would not have a game worth developing. Development and transformation will always be high on the SARU agenda. South African Rugby is by no means unique when it South Africa’s rich rugby heritage, its seemingly endless con- veyor belt of schoolboy talent, its excellent and ever-evolving competition structures and the dedication of its operational staff, means that the likes of the Junior Springboks will always be contenders for the IRB Junior World Championship title

Week at the Peter Mokaba Stadium, which comes to its responsibilities towards trans- saw increased television viewership figures forming the game at all levels. compared to 2012. Visits to our fourteen Provincial Unions Looking ahead to 2014, the major change illustrated that transformation will always will be how the Junior Springboks prepare for present a change of direction on all levels the JWC, with pre-season get-togethers set and areas within the broader South African to be replaced by what is hoped will be more sport – a change not only of how it works, beneficial camps closer to the tournament. but how it thinks, interacts, participates and From an events perspective, the second edi- performs. It is a process of re-invention. tion of the Cell C Community Cup promises Their willingness to implement the SARU much excitement with nine new participants transformation scorecards and their commit- looking to stake their claim, while the Un- ment to monitor and evaluate the outcomes der-18 Craven Week roadshow will head for was encouraging.

102 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 DEVELOPMENT

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 103 104 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 2013 ANNUAL REPORT REFEREES’ DEPARTMENT

INTRODUCTION One of the department’s strategic focus areas was providing a pool of referees to all local competitions and providing train- ing and education to all referees and support officials of the 14 referee societies affiliated to the Union. The department has shown an increase of 12% in active ref- erees since 2012 and this was achieved through various recruit- ment initiatives, implementing an Academy program to fast-track black referees and implementing a KPI scorecard measuring tool with the societies Referee Recruitment Education Officer.

MATCH OFFICIALS IN SA BY GENDER AND RACE WM WF BM BF CM CF IM IF TOTAL TOTAL 1262 42 313 28 662 24 4 0 2335 Active Referee 948 27 197 11 555 14 3 0 1755 Active AR/TJ Only 39 3 6 2 9 1 0 0 60 Active Candidates 207 11 109 15 61 7 1 0 411 Active Selector 1 0 0 0 1 0 0 0 2 Active PR 15 0 1 0 13 0 0 0 29 Active Coach 52 1 0 0 23 2 0 0 78

Since its inception the Academy Squad Programme has pro- OPPOSITE PAGE: duced 31 referees to the various SARRA panels and squads and in Jason Jaftha in 2013 alone, 13 Academy Squad referees were promoted. action during the With the Women Strategy Plan implemented in 2011 the de- Absa Currie Cup partment has produced two women who have serviced nine vari- competition in ous IRB tournaments for 2013. In the past our women received 2013. around two tournaments a year.

ANNUAL REPORT 2013 | SOUTH AFRICAN UGBY UNION | 105 DEPARTMENT ACTIVITIES

Various operations were set in motion to increase the number of referees: • Implemented a recruitment and awareness campaigns as follows: # Recruitment activities and branding at Easter tournaments & festivals, Coca-Cola Craven Week Under-18, The Castle Lager Rugby Championship and the HSBC Sevens World Series; • Media coverage through: # SuperSport and print media # “Know Your Game” rugby Law pocket guides. A mobile application was built and im- plemented. • Shadow The Referee Campaign. Building on the success of last season, the 2013 Shadow the Referee campaign once again proved its importance as tool for the development and retention of young referees in South Africa. • Website and Social media: # Use the referee website as a central point for providing relevant information and awareness; # The website received a 35 % increase in traffic as compared to 2012 # The website was the main source of assisting with the recruitment of referees and there was an increase of 44 % interest to become a referee as compared to 2012 • Using other sporting events such as Cape Argus and 94.7 Cycle Challenge to create awareness. • Implementing an Academy Squad programme since 2007: # The main aims of the Academy Squads are to scout and fast track black referees in the main as well as referees from less affluent societies. # There are a total of 62 referees on the 2013 Academy squad. They were developed in terms of games being organised at various tournaments where applicable coaching, law education and performances measured in order to nominate for SARU Referee Panels. # The most well-known development from the Academy program was , who officiated in the 2013 Rugby World Cup Sevens final. With the Women Strategy Plan implemented in 2011 the department achieved the following results: • SA women refereed the following finals: # Bowl Final (Netherlands vs. Fiji) at the IRB Women Rugby World Cup Sevens 2013 in Russia. # Final (England vs. Australia) at the RFU Women’s invitational Sevens in London. # Final (New Zealand vs. England) at the IRB Women’s Sevens World Series – Guang- zhou, China in 2013. • Marlize Jordaan was appointed on merit to referee a men’s sevens match in Brazil (Peru vs. Paraguay) to become the first ever female referee to officiate a men’s international sevens match in South America. • Marlize Jordaan was nominated and won the 2013 SPAR Gsport Women of the Year Award. Following who did the Vodacom Super Rugby Final and Rasta Rasivhenge who officiated in the 2013 Rugby World Cup Sevens final, the IRB made the following appointments to serve in internationals (graph left) Referee AR’s TMO 6 Nations 3 4 – Test 11 20 6 CAR 8 1 – Women Test 2 – –

106 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 REFEREES DEPARTMENT

Marius van der DEPARTMENT ACTIVITIES TRAINING AND EDUCATION Westhuizen, Rasta Rasivhenge and Marlize Jordaan The department is involved in the development of match officials from second and third tier excelled at the nations and through the Maties/SA Rugby Referees Association Academy in Stellenbosch, Rugby World Cup matches were provided to ten (10) referees who attended the IRB Talent Optimisation Pro- Sevens in Moscow, gramme. They came from Portugal, Canada, Australia, Tonga, Russia, Argentina, Fiji, Japan, with Rasta USA and Spain respectively. handling the men’s final.

ANNUAL REPORT 2013 | SOUTH AFRICAN UGBY UNION | 107 National courses were conducted for 153 officials and fitness tests applied to 94 referees. The fol- lowing education programmes & courses were provided in the various provinces by 26 educators:

National Courses 2012 2013 Level 1 Officiating courses 44 40 Level 1 Officiating attendees 893 662 Level 1 Officiating Certificate of Attendance 893 662 Level 2 Officiating courses 5 6 Level 2 Officiating attendees 153 111 Level 2 Officiating accredited 0 47 Level 3 Officiating courses 0 1 Level 3 Officiating attendees 0 7 Level 3 Officiating accredited 0 ** Level 1 CMO courses 7 2 Level 1 CMO attendees 68 24 Level 1 CMO Certificate of Attendance 68 24 Level 2 CMO courses 1 1 Level 2 CMO attendees 9 10 Level 2 CMO Certificate of Attendance 9 ** Educators courses 1 4 Educators attendees (Reference to Referees only) 14 12 Educators accredited (Reference to Referees only) 12 6 Level 1 Sevens Officiating courses 1 3 Level 1 Sevens Officiating attendees 19 52 Level 1 Sevens Officiating Certificate of Attendance 14 52 Level 2 Sevens Officiating courses 3 0 Level 2 Sevens Officiating attendees 47 0 Level 2 Sevens Officiating accredited 0 0 Total Number of Courses 62 56 Total Number of Attendees 1203 866

Craig Joubert was again rated as one of the top referees in the world and refereed the Voda- com Super Rugby final in 2013.

108 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 REFEREES DEPARTMENT

The following local match officials appointments were made to:

1 January to LOCAL INTERNATIONAL SIDE 31 October 2013 REFEREE REFEREE AR’S TMO LINE AR 4 & 5, ABSA Currie Cup 35 – 70 35 105 time keeper and ABSA 1st Division 59 – 118 15 221 statistician ABSA u/21 77 – 154 23 285 ABSA u/19 77 – 154 1 307 Vodacom Cup 63 5 126 20 232 Varsity Cup 31 62 17 107 Varsity Shield 21 2 42 1 83 Varsity Young Guns 16 2 32 1 63 Community Cup 40 2 80 1 159 Interprovincial Women 34 – 68 – 136 SARU Tournaments 99 – – – – Friendlies 28 – 56 – 56 Internationals Local 20 16 24 6 71 Super Rugby - Local 43 6 86 43 129 Super Rugby – Aboard 14 – – – – Total 643 33 1072 163 1954

For every SARU fixture a performance reviewer is appointed. The data they provide is cap- tured on the Athlete Management System (AMS) which also grades the individuals for either promotion or demotion. Besides this, various Conference calls, selection and grading meet- ings are held. The following assessments where done:

Competition Assessment Video Analysis Reports (Fairplay) ABSA Currie Cup 22 22 CONCLUSION The Referees’ Department made significant ABSA 1 Division 43 35 strides in 2013 and will expand its operations ABSA u/21 66 10 for 2014 to achieve it’s goals with special ABSA u/19 67 5 emphasis on: Interprovincial Women 22 • Refine the Academy Squad Programme Craven Week U18 21 21 to sustain black referees to adhere to the SARU transformation policy. Vodacom Cup 57 20 • As a result of the challenges a serious Varsity Cup & Shield 40 21 fast tracking development programme Varsity young Guns 11 2 will be enforced and managed to meet Community Cup 36 13 SARRA obligations in the development of Friendlies 16 9 women officials in rugby. Total Local Competition 401 158 • Co-ordinate the implementation of the High School Referee Society plan which Super Rugby 5 123 addresses the training and education IRB Tests 30 (BokSmart & IRB Officiating Level 1) of Total International Competition 5 153 officials involved in High School Rugby who are not affiliated to a referee soci- ety. This will ensure that these referees are organised, developed and retained in the system and hopefully are recruited into the local society structures.

ANNUAL REPORT 2013 | SOUTH AFRICAN UGBY UNION | 109 110 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 2013 ANNUAL REPORT COMMERCIAL & MARKETING

he 2013 year was themed as a year of consolidation for the department. This entailed taking a critical look at the commercial model, competition structures and conduct- ing a full rights audit to ensure that the organisation wasT aligned and well prepared for the broadcast and commercial sponsorship renegotiations that would commence during second quarter of 2014. The department also undertook an internal rea- lignment to ensure that our current operating structure correctly fits the environment within which we operate.

From an operational delivery point of view, impact that, while unavoidable, contributed 2013 presented the significant challenge of to continued budgetary “cuts” across the hosting the first-ever International double- department to alleviate the impact of these header Test series (Castle Lager Incoming events. On the positive side we were able to Tours) in June. That not only presented grow our revenue base by the introduction challenges in having to stage two Test of some new commercial partners, pick up a matches at the same venue in succession Sports Industry award and were successful but also against three teams (Scotland, Italy in a number of bids that will over time add and Samoa) that are not the most commer- additional revenue to our structures. cially attractive offerings to our market. In Emerging from our theme of consolida- addition to this we had the unprecedented tion were some valuable insights into where staging of an International (part we are as a commercial organization and of the Castle Lager Rugby Championship) where we can improve following a period being preceded by an International Foot- of thorough research. In addition a com- ball Match, at the same venue, as part of parative analysis of the broadcast audience the inaugural Mandela Sports Day. Both of for the competitions in our landscape was these events had a significant budgetary conducted with some useful insights. The

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 111 following areas were prioritised for analysis: all sports merchandise purchased in South Africa. The research assisted in helping focus • Profile of fans in South Africa on our future target markets and identifying • Level of interest in competitions those areas within the country where we • Spontaneous brand awareness across have potential for growth. all properties • Test match ticket prices SPONTANEOUS BRAND • Focus on Absa Currie Cup and Vodacom AWARENESS Super Rugby The analysis on this proved consistent with • Rights Audit what we expected in that all the major part- ners were recognised, reassuring us that a PROFILE OF FANS IN sponsor’s return on investment for associating SOUTH AFRICA with rugby was in line with our expectations. The interesting outcome of the analysis was that while the greatest concentration TEST TICKET PRICES of supporters is found in the metropolitan This is always an emotive subject and For the first time areas of Gauteng, KZN and the Western Cape almost never in the direct control of SARU, South Africa had (73%), there is a fair spread of fans across as prices are set by the hosting union. two different the country. The LSM ranges between 6 and However, given the challenge that we faced international 10 and 51% of the support base is black with with both the Castle Lager Incoming Tours matches at the 31% naming English as their first language. and the Mandela Sports Day, coupled with same venue on Of these, 65% consume rugby on the DSTV the consistent criticism that we face when the same day, platform with the balance on the FTA (Free- Test ticket prices are revealed, the under- which proved to to-Air platforms). Overall rugby outstripped standing we achieved from this process was be a big success in both cricket and football as the No 1 watched invaluable. In highlighting a few aspects of honour of Nelson sport while SA Rugby merchandise is the this we established the following: Mandela. most consumed, accounting for 24% out of • A price differential strategy at stadiums was the preference (57%) • The average mean of ticket price should be between R150- R300 (depending on the quality and ranking of the opposi- tion) escalating to R300 to R500 for Tests against the Top 4 ranked teams. • In order of importance as a driver to purchase tickets the following was established: Transport built into cost of ticket (either parking or other) Hospi- tality, City where event is held, Opposi- tion and seat allocation. FOCUS ON ABSA CURRIE CUP AND VODACOM SUPER RUGBY The analysis established that the Absa Cur- rie Cup is still seen as the premier domestic Overall rugby outstripped both cricket competition in SARU’s landscape followed and football as the No 1 watched by Vodacom Super Rugby. It is the element of provincial pride and passion that sets the sport while SA Rugby merchandise Absa Currie Cup apart, despite Vodacom Super Rugby attaining higher cumulative is the most consumed, accounting audience numbers and higher average audi- for 24% out of all sports merchandise ences. Tests continue to outstrip both on a match-by-match basis. purchased in South Africa

112 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 COMMERCIAL & MARKETING

ABSA CURRIE CUP Competition Platform 2012 2013 % CHANGE Absa Currie Cup SS1,SS2,SS3 all HD Avail average Audience 4,658m 5,304m + 13% Peak Audience 1,305m 1,174m - 10% Hours covered 64:58 64:36 FLAT Average Audience 544 000 557 000 + 2.5%

VODACOM SUPER RUGBY Competition Platform 2012 2013 % CHANGE Vodacom Super Rugby SS1 Avail average Audience 2,999m 3,233m + 7.8% Peak Audience 1,146m 1,052m - 8.2% Hours covered 242:35 236:29 - 2.5% Average Audience 361 000 359 000 - 0.5%

VODACOM SUPER RUGBY Competition Platform 2012 2013 % CHANGE Vodacom Super Rugby SS HD Avail average Audience N/A 2,501M Peak Audience N/A 111 000 - Hours covered N/A 236:29 - Average Audience N/A 22 000 -

It is worth noting that the Absa Currie Cup sponsorships we will get this balance right attracted a higher peak audience than and be able to deliver a mutually beneficial Vodacom Super Rugby (Sharks v DHL WP 1 offering to both parties. A more tangible re- 174 000 and Super Rugby DHL v sult was the establishment of a formula that Vodacom Bulls 952 084). In general however can now be applied to evaluate the value of Vodacom Super Rugby reached a record of the perimeter and video board advertising at 72,5m viewers of which SA made up 47,7m, all Vodacom Super Rugby, Absa Currie Cup Australia 7,8m, New Zealand 14,6m and and Castle Lager Test Matches. Europe 2,2m. Despite the challenges posed by the series of double-header Tests (Castle Lager RIGHTS AUDIT Incoming Tours) and the perceived modest Although the process was not quite com- quality of the opposition, the impact on TV pleted (90%) the major learning was clearly audiences was neutral, buoyed by the fact that often “less is more”. The proliferation of that on two weekends matches were shown competing brands (clutter) in the stadiums on FTA. The Castle Lager Rugby Champion- at which the majority of our major events ship continued to deliver great audiences, take place has an impact on the exclusivity especially the last two rounds in South that a number of provincial and national Africa given the exceptional performance rights holders acquire. The essence of the of the Springboks on the away leg of the audit was to establish the gearing of the Championship. The Argentina match that sponsorships vs the rights that are afforded was played as part of the Mandela Day was against this and to date some of the find- difficult to assess as we had the influence ings are more of a negative gearing than a from football as well. However, we did see positive. With a few minor adjustments I am a downward turn in match-day attend- confident that going into the next cycle of ances in comparison to the Australia and

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 113 New Zealand game where both venues had Following the event, an Economic Impact sell-out crowds. New initiatives into the Test Study was conducted that reported that the matches were introduced to try and increase tournament had yielded more than R217m the spectator experience with our commer- in direct and indirect economic impact (in cial partners leveraging well especially at comparison to the R154 achieved in 2012), the Ellis Park Test where BMW had amazing with in R24,3m of this flowing into low in- match-day activation. In stadia we attempt- come households, while 700 temporary jobs ed the augmented reality of the match-day were created. This was further evidence that programmes and the introduction of Bokkie our strategy of engaging with municipalities character into the Video screen messaging; and metropols on the benefits of hosting big however the latter was not realised to its rugby events is the correct approach to take. full potential due to connectivity problems The notable successes of the year includ- within stadia. Overall it was a successful In- ed the launch of a number of new revenue ternational window that saw the final match streams in a more comprehensive retail of- against New Zealand as one of those special fering from a merchandise perspective. moments in our rugby history. The Springbok Lifestyle collection was The end of the year saw us host yet anoth- introduced with a passive launch towards The Cell C Nelson er successful HSBC Sevens World Series event the end of 2013 through SARU’s first retail Mandela Bay that not only saw the Springbok Sevens team outlet at the The Springbok Experience tourna- be crowned victors, but also realised our museum. In addition, we have secured the ment was a huge biggest attendance to date, up an impressive exclusive retail rights for RWC 2015 that success, not only 63% on the previous year. There was also an will enable us to offer supporters and fans a because the increased revenue inflow for the tournament wide range of clothing that carries both the Springbok Sevens while a more comprehensive and interac- Springbok and RWC mark in a dual-branded were victorious tive integrated marketing campaign was RWC offering. We also successfully won the but also for econ- undertaken that provided spectators with an exclusive South African rights to the travel mic reasons. enhanced in-stadia experience. programme for RWC 2015 and in so doing

114 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 COMMERCIAL & MARKETING

At the Discovery Sports awards we won the award for the best Social Media Campaign with our ‘Shirtless’ campaign for the launch of the new Canterbury supporters’ jersey. have partnered with reputable Travel com- and look forward to an exciting 2014 to- pany, Tourvest, to deliver a wide variety of gether. All of our new Commercial partners RWC travel packages through our new Travel bring a fresh and innovative approach to our Company ‘SA Rugby Travel’. This will extend sponsorship mix and this together with the to all forms of sport travel around our teams new mix of SARU properties in merchandise, and properties. travel and hospitality suggests that 2014 will We also launched the SARU Hospital- be full of new opportunities. ity offering SARU Engage in 2013, that was instrumental in the delivery of hospitality to our partners and supporters through the Castle Lager Incoming tours and Castle Lager IN CONCLUSION, Rugby Championship Series as well as the and against the backdrop of what has been a positive Cell C Nelson Mandela Bay Sevens. Finally, year within the department, there remains a lot of at the Discovery Sports awards we won the pressure on budgets as the cost bases continues to award for the best Social Media Campaign rise. The planning for a commercial model review of with our ‘Shirtless’ campaign for the launch SARU in its entirety will be an interesting exercise in of the new Canterbury supporters’ jersey. 2014 and one that will set us up for a better revenue Our commercial programme expanded landscape as we enter into the renewal phases of our in other directions with the introduction of SANZAR agreements and broadcasting rights deals as new role players in Asics as our new Ap- well as our commercial programme with all our spon- parel Partner (2014–2019), Cedarberg Aqua sors and suppliers. From a SARU perspective we still (Water supplier) and Samsung as the new need to work on the model around our Test matches mobile, electronics and computer supplier. and how we present these and the commercial model Cell C also took over title sponsorship of the that will underpin this. We aim in 2014 to ensure that Nelson Mandela Bay Sevens as well as title we do things differently at our ‘marquee events’ to sponsorship of the Cell C Community Cup ensure that we provide a great in-stadia experience competition. These new partners, together for our spectators, a more cohesive and integrated ap- with our 2013 extension of the Absa Currie proach to our marketing campaigns and how we pre- Cup agreement for a further three years and sent our products and brands through a more collabo- our current commercial partners will see rative approach with our various stakeholders. Finally, us for the first time have our Sponsorship/ the continued support and open-minded approach of commercial revenue exceed our broadcast the provincial unions during the 2013 season in often revenue for the first time. difficult circumstances should not go unrecognised, This is a further indication as to the and that of our commercial partners and broadcaster: strength of the brand and the success that thank you all for your support and the positive manner both partners and we as SARU enjoy in what in which you continue to leverage your association has been a mutually beneficial relationship. with South African rugby. SARU would like to thank all our partners and suppliers for their continued support

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 115 116 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 2013 ANNUAL REPORT CORPORATE AFFAIRS

he 2013 calendar year was one of significant growth in the activities of the Corporate Affairs department as it strove to deliver on its headline mission of providing outstanding service to rugby’s stakeholders by enhancing theT sport’s reputation, communicating SARU’s activities and pre- serving the game’s heritage.

There was strong growth in the reach and ing the restructuring of late 2011. It came depth of SARU’s social media channels and with a clear direction from the CEO to relo- in the promotion of the Union’s activities – cate the existing, outmoded museum from particularly in the sphere of community and the Sports Science Institute of South Africa in women’s rugby – by way traditional media Newlands to somewhere more publicly acces- engagement while developments to the sible. That challenge came with the additional www.sarugby.co.za website and the launch task of producing a museum that reflected of a Springbok ‘app’ were well advanced by the full, racially diverse story of South African year end. rugby. The first requirement of taking the mu- However, it was in the relatively new areas seum to the people was met by identifying of Corporate Social Investment (CSI) and and securing premises at the V&A Waterfront heritage management that the most obvious in Cape Town, which receives 23m visitors advances were made by SARU, each avenue each year and is one of Africa’s most visited bearing significant benefits in terms of posi- tourist attractions. tive public and media reaction. The launch of An 800m², two-storey building called the Boks for Books schools library campaign Portswood House was acquired on a ten-year and the opening of The Springbok Experience lease, overlooking the main V&A precinct and rugby museum were significant occasions boasting a front lawn that remains a work- not just for Corporate Affairs, but also on the ing croquet pitch. After a period of research, wider SARU landscape. Mather & Co, a Manchester-based world The responsibility for heritage had been leader in sports museum development, were placed in the hands of Corporate Affairs dur- identified as the ideal designers to bring a

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 117 compelling but complex rugby story to life in The Springbok Experience a new-style museum. The completed facility combines interactive rugby games that chal- was launched with an historic lenge kicking, passing, reaction and fitness gathering of 43 national cap- skills with beautifully displayed historic objects among a panorama of compelling tains from all traditions to graphics and video screens. The Springbok Experience was launched capture their handprints in with an historic gathering of 43 national bronze for eventual installa- captains from all traditions to capture their handprints in bronze for eventual instal- tion as a permanent exhibit lation as a permanent exhibit outside the museum. The majority returned on Heritage outside the museum. Day, September 24, for the official The Springbok opening, which was attended by the Experience opened current Springbok squad. to the public on The facility was an instant hit with Heritage Day, the opening audience and with visi- September 24. tors as well as being well supported The current Spring- by the landlord. A new walkway was bok squad as well installed and the stair access was im- as a large number proved by the V&A, while permission of former national was granted to install a full size set of captains from all illuminated goalposts on the rim of traditions attended the croquet lawn. the event. The completed museum was ten

118 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 CORPORATE AFFAIRS

months in development and installation and Former Springbok when finished included 4kms of cabling to support 91 channels of audio visual media (left) and Pierre and 480m of LED lighting among 230 objects Spies (back right) in 19 purpose-built display cases and more joined the learners than 500m of wall graphics. of Kwamanzini Running in parallel with the Experience Primary School in development was the launch of SARU’s first Pinetown, KZN to CSI initiative to supply fully stocked mobile or celebrate SARU’s refurbished libraries to previously disadvan- Boks for Books taged schools as part of the Boks for Books campaign. The CSI campaign. It was launched in Durban in June campaign aim to and by the end of the year libraries had been refurbish and stock refurbished and stocked at Gcobani Higher school libraries. Primary School in Mdantsane in the Eastern Cape and at the Kwamanzini Primary School, in Pinetown, KZN. The programme was born of rugby’s desire to make a different contribution to South African society and underline SARU’s com- mitment to being a caring corporate citizen. Education and literacy were chosen as a focus area as it is priority for national government. South Africa has approximately 12.3 million learners but only 8% of public schools have functional libraries. The majority of these are found in former ‘Model C’ schools where they have the resources to staff and stock libraries.

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 119 OPPOSITE: Spring- In 2011 the World Economic Forum ranked of these areas of SARU’s endeavour – par- bok captain Jean de South Africa 140th out of 144 nations based ticularly of women’s rugby where media Villiers during one on national educational assessments. releases leapt from 13 in 2012 to 60 in 2013 of his many media Education was also chosen because of the – as part of a build-up to important women’s sessions during clear synergies with rugby; Springboks are rugby events such as the 2014 Rugby World the year. ‘made’ at schools and players highly value Cup and the inclusion of the Sevens game in the opportunities they have been given the Olympic Games for 2016. through their schooling. Springbok captain The department issued 730 media re- Jean de Villiers attended the launch and leases and social media channels continued pointed out that he was fortunate enough to burgeon with the continued growth of the to go to a school, Gym, that provided online community. SARU’s Facebook page every opportunity – both in education as well (www.facebook.com/springboks) grew by as on the playing field: “That’s why I believe 23% to 617 000 ‘likes’ while our Twitter han- the Boks for Books campaign is so important dle @bokrugby showed a 47% growth to and why me and my team mates are right 147 000 followers. The channels – as well behind it,” he said. “School made me what as the emailed weekly Bokzine newsletter – I am – I hope this campaign will help other were used to directly publicise the consider- youngsters become all they can be.” able activities of SARU to the local The department added to its staffing with and international support base. addition of a media manager responsible The majority of the information was for the important and growing portfolios of generated around national teams. Corporate Women’s, Youth and Com- Affairs staff were dispatched munity rugby. The result with the Junior Springboks was an upsurge in coverage (to France) and with the Sevens team to the Sevens Rugby World Cup (Russia) to generate ‘brand journal- ism’ in addition to the trav- elling Springbok Media Man- ager. All media houses face severe budgetary challenges and – particularly in the tra- ditional print avenues – and it became increasingly obvious that they have become reliant on the service provided by SARU. It was a year largely free of significant reputational controversy. The rugby issues of the sixth South African franchise and the format of the Absa Currie Cup were causes of The department issued 730 media releases some angst and frustration – while the selec- and social media channels continued to tion of overseas-based players was an issue debated by rugby writers – but the year was burgeon with the continued growth of the free of the major rows that had dogged the sport in former times. online community. SARU’s Facebook page In summary it was a year of significant (www.facebook.com/springboks) grew by advance on all three fronts of Corporate Af- fairs’ key responsibilities. A healthy stream of 23% to 617 000 ‘likes’ while our Twitter communications was maintained in a diverse range of growing and successful channels; handle @bokrugby showed a 47% growth the organisation’s reputation as a premier to 147 000 followers. South African sporting federation was main- tained and major new ground was broken in terms of CSI and in the establishment of a world-class rugby heritage centre at The Springbok Experience.

120 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 CORPORATE AFFAIRS

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 121 122 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 2013 ANNUAL REPORT HUMAN RESOURCES

ARU Human Resources continues its commitment to the development and well-being of its employees. The department also plays a vital role in supporting the busi- ness in recruiting and retaining individuals who have the Scompetencies and skills required to implement SARU’ objectives.

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 123 For us to achieve this, we set ourselves key focus areas for 2013, whose highlights, at high level were:

• HR/Payroll integrated system imple- mentation • Strategic People Plan - with a strong focus on Succession Planning • HR Basics - An aspect of employee data integrity and effectiveness in other areas of HR Operations

Organisational planning for the future relies on good employee information, which is required by the business leaders. Accordingly, in 2013, we spent most of our time focusing on getting our HR basics right. The implementation therefore of a new HR/Payroll system as a tool to achieve this objective was successfully delivered in January. The process of People Planning which started three years ago, with the introduc- tion of the Performance Management Plan (PMP) process and Personal Development Plans (PDPs) finally bore its fruit when both these tools were used in our succession plan- ning meetings which were held with each and every department. From this exercise, individuals were identi- fied as successors for critical roles in the organisation. For the first time, an Employee Wellness survey was conducted early in the year with the intention of highlighting themes on which to focus our Wellness campaigns dur- ing the year. As a key profession concerned with the people in SARU, the HR function continues to act as the catalyst for maximizing the value that employees can contribute. PAYROLL SYSTEM In January we implemented a new HR/Payroll TALENT MANAGEMENT integrated system called Computer Related RECRUITMENT Systems (CRS), which went live in March. In 2013 we continued to recruit high cali- The modules that have been implemented bre staff in our three employee categories; since then are: Payroll, Employment Equity, permanent, contractors and seasonal em- Training, Employee Relations and Perfor- ployees. We strive to source individuals who mance Management. meet and have the potential of growing in This new development has helped the our core competencies of understanding our HR function to manage compliance with rugby environment, innovation, leadership South African legislation, streamline and emotional intelligence. processes for training, recruitment and selection, and produce reports for internal PERFORMANCE and external use. Consistent individual performance played

124 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 HUMAN RESOURCES

Siya Kolisi during the SARU’s 67 minutes in support of Nelson Mandela Day at Siyabulela Primary School in Cape Town. a vital role in our succession planning organisation because of the value they bring processes. Employee performance, to their roles, and those we need to invest which is assessed using our Performance in, and retain as they are seen to have the management tool, was taken into account potential to fill leadership roles. when planning for successors to SARU’s critical roles. STAFF COMPLIMENT SARU employees are of a diverse nature. SUCCESSION PLANNING We have permanent, fixed term contractors, A new talent management tool was im- seasonal employees and executives. At the plemented during the succession planning end of 2013, SARU had 576 employees of process. The tool has now given us an which 143 were women and 433 men. indication of a number of employees who need to be developed and maintained in the

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 125 NOTES

126 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013 NOTES

ANNUAL REPORT 2013 | SOUTH AFRICAN RUGBY UNION | 127 NOTES

128 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2013

SOUTH AFRICAN RUGBY UNION ANNUAL REPORT 2013

SOUTH AFRICAN RUGBY UNION ANNUAL REPORT www.sarugby.co.za 2013